It’s just not that easy though. Pensions are failing in a lot of unions all over the country and in a lot of cases it’s because there are less and less union workers paying into it to support the amount of retirees drawing from it.This could all have been avoided if the government would just pass a law that says all pensions MUST be fully funded every year. Not allowing companies to fund them at whatever the minimum level is. This allows companies to screw their employees. Second pensions should be secured and not allowed to be raided, in buy outs or takeovers, or reduced in bankruptcy, those monies should be secure with no way to access it for anything but pensions.
it’s easy, congress could do it but doesn’t have the balls or kittys to do it.
Illinois government is a perfect example of it. The pensions are guaranteed and people can retire so early while taking a large portion of their salary and medical that the current employees have no chance to cover the costs. That puts the onus on people (tax payers) to pick up the slack. Most people, rightfully so, have no interest in paying for someone else’s pension.
If the market takes a huge hit in the next few years tons of these pensions that are just barely holding on will be insolvent.
I think 401k’s that an employer can contribute to is a better answer than a pension and all the associated overhead. That’s also money that no one can touch other than the employee and if they get loans on it or pull money out it’s on them.