Moral hazard isn't the only issue with union retirement funds buying stock: you want to mitigate the risk of being laid off or forced to retire and having your

Moral hazard isn't the only issue with union retirement funds buying stock: you want to mitigate the risk of being laid off or forced to retire and having your fund lose value at the same time. An airline employee with a retirement fund that consists of the same airline's stock is a very bad idea from a risk standpoint: you ideally want your fund and your job to be uncorrelated in order to reduce the volatility of your income stream.