Analyze_This

There may have been another thread on this over the last few days….
If it seems backwards to you maybe you are considering it from the beneficiary (retiree) side rather than the liability side. The liabilities to the retired workers are nominal so they do not adjust for inflation, therefore the liabilities do not go up with inflation, so they are not sensitive.
The active workers salaries will adjust for inflation and will hence accrue more benefits if inflation is high.
I feel like I am only repeating the guideline answer here, but not sure how else to say it.