Sure the company would prefer a B fund. It's very difficult to forecast costs in regards to the AFund. I doubt they are concerned so much about those of us on property, but what about the next generation? It's not impossible to believe that our life expectancy will greatly improve over the next 30-50 years. Actuarial tables do a pretty decent forecast, but it's hard to go that far in the future. And you'll need to when you hire a thirty year old tomorrow. Will he live to 80 or 100?

Some people think the best way to effectively kill off Social Security is by eliminating cost of living adjustments. We just did that to ourselves. 130k today is a pretty decent amount of money. What will it be worth in 35 years when the 30 year old retires (the retirement age will probably go away by then)?

There was a time when we thought companies like GM would always rule the world. I doubt people thought they'd lose pensions years ago. A funds are great if they are there when you retire. Renewing money is a great thing. Ask all the people that are receiving checks from the PBGC which plan was best for them? You'd get differing responses, but if you were getting 130k in retirement, and now getting 30k, you may have opted for the B fund. B funds can swing wildly with the stock market depending on your investment choices. You can assume a nominal rate of return, but it's really just that, an assumption.

I'm looking at retiring in about 10 years, so my outlook isn't as long term. But if planned retirement date was 2050, I have to say I'd take the cash. You'll only know which choice was best when you die.