Pension is broadly understood to be a defined benefit. Workers contribute to the pool a certain amount every months, government/company contributes a certain am

Pension is broadly understood to be a defined benefit. Workers contribute to the pool a certain amount every months, government/company contributes a certain amount every months for every worker and when a worker retires the worker draws a specific amount until he or she dies or in some cases until his or her heirs die. The government (via PBGC) is on the hook for the amount until the time of death. The issue with defined benefit plans is that they are as they are being "negotiated" not self-sustainable with the unrealistic return expectations and having costs not adjusted for the reality of increased life expactancy. Currently most of non-union ( and mostly non-government union ) employees have a defined contribution plan. A worker contributes a specific amount every year, a company matches some amount of workers' contribution. At the retirement worker's draw down is limited to the amount in that account. If the account did well. the maximum amount is that can be drawn is large and if it has not done well, it is not large.