Okay, fair enough. This topic gets me a little agitated because I personally lost a lot of money as a result of the pension termination. Sorry if I jumped to the wrong conclusion.

401Ks in and of themselves are not really a good investment vehicle and most people don't a clue how to invest properly, especially airline pilots. To give them control of their money, in most cases, means they will invest it poorly and not have enough to retire on. The nice thing about pensions was that individuals didn't get a say in their investment, but they knew what they would have at retirement based on their years of service and final average earnings. It isn't too much to ask a company to provide for someone who has been loyal to them for 30 years. That is not an entitlement mentality either, it is just a point of view based on honor, loyalty, and integrity.

When you add company matching to a 401K it becomes slightly more attractive, but the individual will still find a way to lose most of their money by taking too much risk. The far better method to resolve this crisis is to move to a European style of regulation where pensions are concerned.

When I fist came overseas again after 9-11 and was telling people how my pension had been terminated they were incredulous. They couldn't understand how that could happen because with the rules in their country it would not have been possible. Companies are forced by law to keep the pensions funded enough to cover all obligations. That is what is necessary in the USA, not a downgrading of retirement to a pure 401K system.


TP