brindy
"Maybe we should limit DB pensions to some standard reflecting what those in the private sector have available to them"
Th e private sector has the increased interest rate caused by inflation. In other words, the interest rate available to the pension fund is approx the real rate plus the inflation rate. That is reflected in the return on investment. The higher inflation, the higher the return on investment. In the late 70s and early 80s, when inflation averaged 9%, interest went as high as 18%. Now it would be considerably lower.

In the 70s and 8os, federal actuaries assumed real interest of about 3%, inflation 3 1/2%.