"Defined-benefit pension plans are very difficult to finance successfully: That is why so many of them, both private and public, are deeply underfunded. It is also why they are a disappearing financial species.... [H]ere was a 'big idea' of a half century ago: Let's have the government guarantee these pension plans! ... Politically, it was a brilliant idea, especially if you wanted to negotiate pensions which companies could not afford. Financially, it was a less good idea ... the law requires that the PBGC 'be self-financing.' So far, the PBGC has 'self-financed' itself into a $26 billion hole."

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