Younger workers, who tend to change jobs more often than their elders, like portable pensions because these plans allow departing employees to take their retirement earnings with them to their next job. Also, employees don't have to wait until they're 65 to get their money. For their part, companies don't expect long-term loyalty from young adults, either. Ross Inc. Of course, the most important reason that defined benefit pension plans are still popular may be that they're often cheaper for employers. L.I. Recouping Company Money Furthermore, when an employee enrolled in a traditional pension plan leaves, the company rolls the money it had set aside back into the plan.
Portable plans can pose other costs for firms with high turnover.
Enrolling new employees and eliminating departing workers is an additional administrative expense. And when staffers leave, there's no upside for other plan participants.