Employers have largely abandoned defined benefit pensions because they are costly, administrative nightmares and because accounting rules affect corporate earnings. The exception is government plans which don’t have to actually deal with the niceties of accounting, adequate funding or their liabilities or spending.
Nevertheless a steady reliable income stream in addition to Social Security is highly desirable in retirement.
How about this?
Let’s go with a 401k plan in which the employer contribution is used to regularly invest in an annuity. The value of that fund can only be used by the worker as an immediate annuity upon retirement – at a minimum age.
It would be fully portable in some manner.
For example, given the typical funding for an average pension plan is about 8% of covered payroll, under my scheme the employer automatically contributes 4% of earnings to the 401k annuity and matches 100% of employee contributions up to an additional 4% of earnings. Thus even if a worker only save 4% of earnings their account grows by 12%.
The employer is relieved of the administrative and accounting burdens of a defined benefit pension, but still provides 8% of payroll toward retirement. The worker is guaranteed a future income stream, can still accumulate additional retirement funds and changing jobs does not lesson the value of the annuity as it could with a pension.
Not as good as an old style traditional pension I know, but far better than a do it yourself retirement for most Americans
QUINNSCOMMENTARY 
My inner investor cringes at the thought of purchasing an annuity, yet I know they are not only appropriate, but are a good choice in many instances. I’d rather see somebody with an annuity (that was purchased over 40 years) and a Social Security check than just a Social Security check.
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I wouldn’t buy a deferred annuity, but an immediate annuity is not much different than a pension. In fact, my old employer just bought annuities from a major insurer for 2000 retirees and transferred $1 billion dollars from the pension trust fund.
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I’m not familiar with immediate annuities but will do some research on them. I appreciate your response; I just might learn something!
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None of the companies I worked for would ever consider giving employees an 8% match. My first company never provided any match.
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The average 401k employer match in 2023 is between 4% and 6% of compensation. The most common structure is 50% partial match contributions up to 6% of salary.
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