Someone else pointed out the flaw in your second argument.... suffice it to say that they did not say that the money being put in the 401(k) is mostly from the person, not the 'company' (or government entitiy).... most of the value of the pension is NOT from the employee... and some do not put any of their own money in.... so it is all extra...
Yes, I see how this works.... do you?
But to counter, the person with the 401K can get an 11% or higher return on their money, even though it is mostly their contribution with a little bit added in by the employer. The person with the public pension on the other hand has to settle for a guaranteed 8% (I think that is about the return they assume?) although I guess also they get it adjusted for inflation...not sure about that.
It is kind of strange that a public employee gets a pension *and* gets to contribute to a tax defered account like 401K *and* gets social security in some cases. I guess they get a 5 or 6 leg stool while the rest of us make do with 2 or 3. Three legs are more stable than five anyway