It seems to me that the employer will fund it either way. Maybe I’m misremembering stories of pensions being mismanaged and lost. I think the most important thing is that the employer actually does something to fund a retirement, in my way of thinking the 401k approach puts me in control of the money so I don’t rely on someone else to not fail.
Whether it’s promised bonuses, stocks, or retirement funds, my motto is always “show me the money”, and I’ll believe it when it’s in my hands.
They’re not usually run this way. Generally pension funds are the same as your 401k, but on a bigger scale. They also usually focus more attention n managing risk and expenses…… I used to work for a company that did exactly this for some insane number of hundreds of billions of dollars
You might invest part of your 401k in a public shared sp500 index fund, a pension plan might invest part of its money in a private sp500 index plan managed solely for them, usually with lower fees