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Subject:  Re: Traditional pension rant (long) Date:  11/12/2003  11:29 PM
Author:  pauleckler Number:  37792 of 78169

Greg, I agree that defined benefit plans are not perfect. You certainly hit many of the main points.

But you missed a very important one. That is that the employer or the insurance company worries about coming up with the funds needed to pay those promised benefits. Hence, the system is professionally managed and guaranteed (as far as it goes).

The defined contribution plan offers none of these promises. You are on your own to manage the investment properly and its your problem if there are not enough funds to fit your lifestyle. Hence, it forces people who are not confortable wi