Pension plans. The retirement vehicle that the older boomers could count on. No more. With so many organizations gradually replacing DB plans with DC plans, pension plans are gradually dwindling.
Later year Gen X’ers and Y’ers (Millennials) would be fortunate to have a pension plan payout. However, there is a whole generation of boomers familiar with the concept and the potential security pension plans provided. For those optimists is a concept presented in this Forbes article that shows some promise.
The question is would there be enough volume for legislators to add regulations to make it a mainstream option for retirement planning? What would it take for you as a plan sponsor to adopt it? And if you were a participant, what rules and compliance requirements would need to be in place, beyond existing rules, for you to entrust your DC plan lump sum payout to be converted to a corporate pension payment? Would you actually do it? Why or why not?
Feel free to share your ideas. Is this an idea you could come around to accepting?