I had to make the choice to either go with the state pension or an optional 403b stock plan when hired. You were immediately vested in the 403b, but only got your principal back from the state plan if you left to early (10 years? something before it was clear one would have tenure I think). So my "pension" is whatever the market does with my stock and bond choices. I need the years in I think to buy the healthcare when I retire.
Quick primer (for the US):
"Pensions" can be categorized in one of two ways in the US:
1. Defined Benefit. ("DB")
2. Defined Contribution. ("DC")
DBs are what people normally think of as "pensions." At some point in the future (retirement), you will get an amount that will be determined ahead of time; either a dollar figure ($200 a month) or some amount as determined by a plan (salary and years of service is a common one).
DCs aren't ... well they aren't really pensions. Usually they are just retirement plans, often tax-preferred. Think of 401k and 403b. The employee, employer, or both put money in and at some point in the future, the employee gets the money (with investment gains).
The specific issues when it comes to DBs are pretty simple- they are much better for most employees. DCs effectively offload retirement risk from the employer to the employee (and often from the employer to the government). Most people consistently don't put enough into the DCs to effectively support themselves in retirement.
However, DBs have their own issues as well. The primary issue is the Wimpy issue- "I'll gladly pay you Tuesday for a hamburger today." When bargaining over the terms and conditions of wages, employees like to get security down the road. They will forego present money for that security. But on the other side, employers need to be careful. It's easy to promise money that the current employer will never pay- that's a problem for the next CEO (or governor) 30 years from now. Without careful attention, both sides will rationally bargain up higher DBs because it benefits them.
But then the future comes, and the people who gave up present wages for future benefits will get screwed because the future employers will either declare bankruptcy to avoid obligations (private) or seek to undo their obligation (public sector). Which means that more people clamor for DCs, which, again, are a much worse option for the majority of people. Not all- they are great if you are already well off. But most people.
... none of this having to do much with either COVID or TTRPGs, but it is quite fascinating!
