Decker,
I'm sure a DB plan can work and if some company chooses to implement one then that's their business.
My problem is more with pensions for govt employees. I just don't think they are sustainable and certainly not a the levels that I see.
I'll admit my view is certainly biased since I am self employed and get no pension at all.
Private DB plans are wholly funded by the Employer. They are part of the bargained for compensation of the workers. When the employer, who also doubles as the trustee, fails to fund the plan adequately, I'm of the opinion that this is, more or less, intentional. There's a gov. agency called the PBGC which bails out failing DB plans. INstead of running a square plan, I'm betting that the ER was counting on a gov. bailout. After all, GM's pension is too big to fail. Only problem is is that other companies adopted the same tact. The PBGC is billions in the hole and now we have this.
I agree with you that DB plans are dead for large companies.
The capitalists in this society wanted to shift the burden of funding one's retirement to the worker.
Mission accomplished.
The capitalists wanted a pliable workforce on an earning level with third world workers.
Mission accomplished.
Security is gone and it's every man for himself more or less. While that concept appeals to young libertarian men looking to make a stake in the world, that means shit to me.
The death of the DB plan is one more step in the direction of what the wealthy have always wanted: a pliable workforce that works for food. That is the ulitmate goal here. Speculation mode over.