Speaking of pensions (defined benefit plans), I would be suspicious of them anyway, since until you start to receive pension payouts, and of course even after you you start getting them, the money is still under the control of the corporation, right? As long as they are ‘holding’ that money for the retirees, present and future, it’s susceptible to theft by the corporation. Doesn’t that frequently happen?
What I kinda like about 401k’s is that the money is mine, even the part of it that is contributed by the company, my employer, after vesting. I don’t believe there is a way for them to go in and steal it since they are not ‘holding’ it for me. Of course, the downside is that people who switch jobs look at that money as a ‘bonus’ when they quit, instead of leaving it there or rolling it into an IRA. It should be more difficult for people to withdraw it than it currently is.
