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I'm not much of a finance guy so please tell me how this is different than a Ponzi scheme.

• slededit 10y ago
  Generally pensions operate similar to a 401(k) except for entire companies instead of individuals. Companies are supposed to fund them with the assistance of actuarial models. The problem is a lot of companies either under-funded or the pensions themselves invested poorly. Ultimately the future cannot be predicted so its likely at least some would fail even if everyone were blameless. This is really a double failure of both the pension plan itself and the insurance that's supposed to provide the public with trust in the system.