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Bravo to Sen. Hatch for a viable solution that recognizes reality. Unfortunately, humans dont intuitively understand multiplication. We can estimate the size of one pile added to another but 3 x 3 = 9? Magic! That is why it is called the magic of compound interest. So it is perfectly understandable then, that city councils and other non-actuaries could give a mere 3% annual pension increase for a future 30 years and never realize the size of the final bill. Insurance companies employ actuaries who understand in their bones how those innocently small numbers can turn into large future bills and therefore can correctly price the future obligation now. Good suggestion, Senator!