[soVeryTired]

I'm not from the US, but I'm guessing a 401(k) pension scheme is defined contribution: you pay in cash in a tax advantaged way, and the risk that the pension scheme loses money or doesn't make enough of a return to support you in retirement is borne by you.

I'm also guessing that the government's pension scheme is defined benefit: the risk that the scheme loses money is borne by the government, and you get your pre-determined payout unless the government goes bankrupt.

Defined contribution pensions are typically much more valuable, since they can obviate the need to save for retirement (or at least part of that need).

In the UK, it's extremely competitive to become a civil servant despite the mediocre pay. The reason is security, both in your job and in retirement.

[arglebarnacle]

Yes that's right, but you've got the terms reversed. Defined contribution is the one where you bear the risk, and defined benefit is where the government bears the risk.

[gbacon]

A portion of the risk. PBGC pays out at a significant discount.

[soVeryTired]

Whoops! My bad - edited.