Originally Posted by RiddleEagle18
All the airlines need to switch to 401k plans. That way the money is in the bank and we are not funding guys pensions who retired 10 years ago today, when they should have been funded 10 years ago while he was working.
The defined contribution plan was negotiated to act as a stop-gap to lessen the impact of an age 60 retirement and the penalty that early withdrawal of the defined benefit plan would present. A 401K can be an element of the defined contribution plan, although it would fail miserably as a sole source for retirement.
The 401k has the lowest contribution limits of any ERISA qualified plan. Why would you advocate going with that? How about a 412b? Act like a DB, although has 100% funding requirements.
Going strictly with a 401k would be a major step backwards.