Alexis is choosing between a job in the National Parks Service, which offers a pension plan, and a forestry contracting job with a 401 (k) plan. Why would Alexis choose the 401 (k) plan over the pension plan?

One advantage of the 401 (k) plan over the job with the pension plan is that a pension plan is dependent on the employer in a specific way in which if the employer announced bankruptcy, the company is no longer required to pay the pensions. A 401 (k) gives more security to the employer as it protects them from this situation.