“Unions and their members should stop relying on their employers to fund pensions simply because of some old infatuation with the supposed risk-free nature of a defined payment retirement plan. A pension that promises retirement benefits according to a set formula is not risk-free when the employer can simply fail to live up to its side of the bargain. Unions have traded market return risk for employer non-payment risk and that trade is looking worse every day.”

 

 

http://www.forbes.com/sites/jeffreydorfman/2013/12/07/illinois-and-detroit-hand-union-workers-a-lifeline-will-unions-accept-the-gift/