Source: American Society of Pension Professionals & Actuaries
Running any pension plan entails challenges and has characteristics different from those of other retirement saving vehicles. But even among pension plans themselves there are variations.
Pension plans run by private-sector employers and those run by governmental entities for their employees share their ultimate purpose of providing dependable and predictable revenue to their covered retirees. Still, however, they do vary from each other.
One of the ways that private and public pension plans differ is in their funding status.