I haven’t studied the history of pensions, but I suspect that they are another of the unintended consequences of the income tax. Before the income tax became a serious burden to average Americans, I imagine that most just saved out of their pay. They had to worry about their own lack of good judgment in putting money away for retirement, but they did not have to worry about the employer underfunding the pension plan or the union squandering the money. If we got rid of the income tax, people would not have to worry about “timing” their income in an effort to minimize the overall bite by the government.