Richman
JC’s Resident Curmudgeon
Because it isn't. You got paid while you worked at the company. You were paid for services rendered. This idea that you could then stop working, but still have the company support you til the day you die sounds... untenable. That could be 20+ yrs of care needed for someone bringing in 0 revenue.
Hold the phone there, professor.
When you hired on with a company, you did so with an agreement that the Company compensate you with pay and benefits. It takes two to tango.
If the company agrees to fund a defined benefit plan, then that becomes part of your overall compensation package during your time of employment.
The company is not taking care of a person who provides zero revenue. The fund is providing deferred compensation calculated at the agreed value.
In normal times, which we are slowly creeping back to, a well managed DB plan in times of modest market returns and historically average interest rates is actually less expensive than a DC plan that pays less to the employee.
I love it when youngster “investors” lose their minds when it turns out that money actually costs something to use.