So enter PBGC's new rule: People who transfer their 401(k) balances into a pension plan will get larger monthly pension checks throughout their retirement, no matter how long they live, and PBGC will provide coverage if the pension plan goes broke. No wonder AARP and the AFL-CIO both support the idea.
So do I—for the ignorant masses. And by "ignorant" I don't mean stupid. I'm simply referring to those who are uneducated about proper investment management strategies.
Read MoreGovt guarantees 401(k) pension rollovers
Given the choice of letting the uninformed fend for themselves versus offering them the opportunity to place their funds into an account that literally guarantees they will receive a monthly check for life—with that guarantee backed by an agency created by the federal government, no less—I'd encourage them to place their 401(k) funds into their pensions, too.
But if you have a good understanding of personal finance (which is easy to do) and you learn how to manage your money properly (which doesn't take long), you'll agree with me that choosing that pension-rollover option is a bad idea. Or, rather, that there is a far better idea than that.