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View Diary: The political underbelly of the pensions crisis: What broke the system, and how do we fix it? (84 comments)

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  •  ...which is what they should do. (1+ / 0-)
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    In my state the Repubs want to switch state workers to 401(k) plans, 'cuz all the private companies are doing it to their workers.
    Defined benefit plans are a disaster, and assume a perfectly functioning government/corporation that almost never occurs in real life.

    Defined contribution assures worker compensation comes off the books immediately and workers aren't left trying to convince the populace to take a massive tax hike to cover their retirement.

    •  The one plus of a 401K plan is that if your (1+ / 0-)
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      employer goes broke, you have a higher chance of retaining your full pension than with a defined-benefit plan.  (I know about the Pension Benefit Guarantee Corporation, and also about its limitations.)

      Of course if your 401K plan goes broke, well, then you're screwed possibly.

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