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The pension may be held in trust, but if the employer goes under, the pension stops getting new contributions. In many cases, this led to insolvency of the fund
by kbolino 2y ago
The pension may be held in trust, but if the employer goes under, the pension stops getting new contributions. In many cases, this led to insolvency of the fund as well, since contributions before employer insolvency were usually not high enough to ensure fund assets could cover future obligations.
- yohannparis 2y agoIndeed. A proper fund should be a managed investment fund like the Canadian Pension Plan fund for example. I do not think a fund is better than a 401k in terms of returns over investment. But it's for sure easier for the employee, as retirement fund is a complex topic better managed by professionals.