If you ever find yourself envious of those who still have access to the classic defined benefit pension plan through an employer, it is worth remembering that they are not completely risk free.

In the wake of the financial crisis, many employers are finding that their defined benefit pension plans are both underfunded and unsustainable.

One natural course of action in response to this situation is filing for bankruptcy.

In this situation, much of the value that has been promised to employees through the pension plan evaporates.

Employees who have paid into the pension plans over the years find themselves in a terrible situation: one of their core retirement assets has been depleted and more than likely they have not been saving outside of the company sponsored plan.

Source: Macleans

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