Yes, you're right that a pension often involves a reduced salary for the promise of a pension at retirement age. That's a huge part of the appeal of a public se

Yes, you're right that a pension often involves a reduced salary for the promise of a pension at retirement age. That's a huge part of the appeal of a public sector job that pays significantly less than its counter parts in the private sector. And that's why public sector employees get extremely angry and litigious when governments try to reduce their obligations, even as agencies face dire financial straits. Which 401(k) plans are you thinking of require paying out to a retired employee if that employee has contributed 0%?