As profitability declines so does cost. With losses there is no additional savings but are we talking about a higher rate due to the sale of profit sharing? That would amplify costs in a down turn and accelerate the need for a correction. The "at risk" model is a much more responsive scheme that values the health of the company giving us a larger buffer above the bankruptcy threshold which is how we ended up with the drastic cuts. When viewed in comparison there is definitely cost savings with profit sharing especially during a loss.