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Defined benefit pensions.
Defined benefit pensions provide guaranteed lifelong retirement income to retirees and are managed by professionals.
"We're ending defined benefit pensions in front of our eyes," said Mr. Stern.
The availability, stability and value of traditional defined benefit pensions are diminished.
(At the moment they can, but very few do, because defined benefit pensions are so good).
Defined benefit pensions include final salary and so-called career average schemes.
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Defined-benefit pensions, which link retirement income to salary, are expensive promises to keep.
Cops and firefighters can retire in their 40s and draw defined-benefit pensions for life.
In the private sector, meanwhile, most companies have phased out their traditional defined-benefit pensions altogether.
Of the merits of 401 k)s vs. defined-benefit pensions?
Some companies, like Continental, offer both 401(k) and traditional "defined-benefit" pensions.
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