There have been some calls for overhauling public pension plans that involve replacing the current system with 401k-style plans. While a 401k can be a good vehicle to encourage savings, it does not seem that these plans have enough inherent stability to serve as the basis for a secure retirement. Thus it is difficult to imagine how they can adequately replace the current pension system.
A fundamental problem with 401ks from a retirement perspective is that they shift risk to individuals who are usually not in a position to manage that risk as well as the state can. A thirty year history in the private sector gives enough of a track record to evaluate their performance, and it's been less then stellar. For state workers, these concerns are amplified because they do not contribute to Social Security, and this leaves state workers without the most basic retirement safety net.
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