Pensions in the U.S. have always been a bit of a balance sheet scam. With few exceptions companies were allowed to comingle pension assets with the companies' day to day funds with a chunk kind-of fenced off. But the pension fund was fair game if the company went bankrupt, and in the 80s a very popular corporate raider tactic was to buy a company, leverage it as much as possible, and if it went bankrupt divert as much of the pension fund as possible to paying the very managers who bankrupted the company.
Government pensions are worse in that few government entities ever set aside a truly funded pension fund, using the argument that as a continuing entity theyd always be able to top off the fund with additional tax revenues if the investment projections did not pan out. In practice no elected official will voluntarily vote to raise taxes to meet the obligations to top off oension funds, hence the slow unfolding train wreck with public pensions in Illinois.
A general failure of any defined benefit pension seems to be the dependency on the sponsoring organization as a continuing, growing, profitable entity. No accomodation for changing economics, diminished industries, or reduced workforce.
Government pensions are worse in that few government entities ever set aside a truly funded pension fund, using the argument that as a continuing entity theyd always be able to top off the fund with additional tax revenues if the investment projections did not pan out. In practice no elected official will voluntarily vote to raise taxes to meet the obligations to top off oension funds, hence the slow unfolding train wreck with public pensions in Illinois.
A general failure of any defined benefit pension seems to be the dependency on the sponsoring organization as a continuing, growing, profitable entity. No accomodation for changing economics, diminished industries, or reduced workforce.