I believe the real problem is that market-level salaries are determined by surveying comparable jobs in private firms, but without taking into account the added compensation represented by a pension. I used to work for a large regulated utility in the IT area, and my job came with a defined benefit pension. However, my salary was substantially below market, which I know because after more than 15 years, I left and took a job in private industry with an immediate 25% bump in annual salary, but without a pension.
Basically, a pension is an understanding that you accept lower pay during your career in exchange for a guaranteed annuity in retirement, but the workers have by and large completely broken their side of the tacit agreement.
The governments underfunding and corruptly investing pension funds did not break their side of the agreement? Or the numerous private employers where employees have had to take a reduction on their promised compensation?
Why would anyone trust a good politician to nominate a good pension fund board member to hire good investment firms to make good investments when you can cut all that agency risk out and just stick your money in VOO and VCSH or a target date retirement fund at Vanguard/Fidelity/Schwab?
Basically, a pension is an understanding that you accept lower pay during your career in exchange for a guaranteed annuity in retirement, but the workers have by and large completely broken their side of the tacit agreement.