Public sector pensions still promise a formula while most private sector workers carry only a pot

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Withdrawing from a multiemployer plan can trigger a liability payment that a small contractor cannot survive The PBGC guarantees the monthly benefit up to a statutory cap if a single-employer plan runs out of money Longevity and return assumptions decide the contribution an employer must make each year Collective defined contribution pools longevity risk without promising anyone a fixed formula Sweden credits a notional return on contributions and then divides by cohort life expectancy at retirement Means-tested top-ups cut old-age poverty but erode the return on a lifetime of contributions Converting the pension to a lump sum uses the plan's own rate which is rarely the annuity you could buy outside The three-pillar model splits a public scheme occupational plans and private savings into separate jobs A subsidized early retirement factor inside a defined benefit plan can be worth more than a year of salary Raising the contribution rate and raising the retirement age solve the same cost from opposite sides