Pleased to meet you <a href="http://xnxx-xxnxx.in.net/" rel="nofollow">xnxx</a>  DB plans have the potential to be very valuable to workers. But in practice they create a number of bad incentives. Managing a successful pension requires long-term thinking, and an ability to both sacrifice for the future and account for risk. Many state and local plans try in good faith to do this, but others are tempted to offer up short-term gains and underfund. Private accounts have been demonized for exposing savers to more risk, but at least the assets are yours and the risk is transparent. For that reason they may be a better alternative for public employees. We learned from Enron that investing all your 401(k) assets in company stock is a terrible idea because the fate of your employer and your savings are tied together. But in some ways DB plans have the same problem. A well-structured individual account can offer better diversification and is always fully funded.