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The Employee Benefit Research Institute says about 20% of private workers are now covered by defined-benefit plans, down from 35% in 1980 and a peak of 62% in the 1970s. Q: Have companies set aside enough money to pay theirretirees what they're owed?A: No, they have not, and that's the crux of the problem barenaked ladies jane . At the end of last year, the government estimated that pension funds were $450 billion short of what employers needed to meet their pension obligations barenakedladies youtube . Most of the shortage was with financially healthy companies that stood a good chance of earning the needed funds, but $108 billion of it was with companies on shaky financial footing . Q: Isn't there a government agency to bail out companies that can't meet their pension obligations?A: There is by barenakedladies . The Pension Benefit Guaranty Corp. , in theory, is available to pay retirement benefits to companies that don't have the needed cash barenaked maroon .

But the PBGC is itself underfunded by an estimated $23 billion. Q: That sounds like a disaster in waiting barenaked ladies enid . What does the legislation do to head it off?A: The legislation gives most defined-benefit pension plans seven years to become adequately funded barenaked pinch . Companies would have to be prepared to meet 100% of their pension obligations, not 90% as under current law barenaked pinch me. Beleaguered airlines -- especially Northwest and Delta, both in bankruptcy -- would have up to 17 years to become fully funded. Q: If defined-benefit pensions are on the way out, is something replacing them?A: Yes: defined-contribution plans testing 1 2 3 barenaked . Barenaked Ladies tickets One form is the individual retirement account, fed with tax-deductible contributions. Another is the 401(k) -- which undergoes significant changes in the new legislation. Q: How does the 401(k)work?A: In the Revenue Act of 1978, Congress authorized employers and employees to contribute before-tax earnings into accounts for each worker's retirement -- spelled out in section 401(k) of the legislation.

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