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They shouldn't be an obligation that the company has, that's what makes them suck. They should be separately held funds that can survive beyond the lifetime of
by mattmcknight 18y ago
They shouldn't be an obligation that the company has, that's what makes them suck. They should be separately held funds that can survive beyond the lifetime of the company (like 401k plans). To make them company obligations is to invite disaster. It's analogous to the situation at GM where each current worker covers the health care of 10 other people. If you want a pension plan because you trust and want to pay pension plan administrators to manage your assets, it needs to be a separate financial entity from the company itself.
- olefoo 18y agoThink of it this way, the fact that it's an obligation is interface; that it was not implemented as a stand-alone fund is the responsibility of the managers. And given what has happened in the financial world in recent years... it's quite possible that stand-alone funds would have been completely wiped out through mismanagement or outright theft.