Consider two tenured UIC faculty members. Faculty A has a defined benefit pension plan with UIC; Faculty B has a defined contribution plan with UIC. They have carefully calculated the value of their pension plans when they will be 67 years of age, and these values for A and B are equal.

Please explain the following two outcomes. Owing to the enormous expenses incurred during the pandemic, reports have begun to circulate that the State of Illinois may effectively declare bankruptcy. As a result of these reports,

1. Faculty A is VERY distressed;
2. Faculty B is concerned for his colleague but is not stressed.

Why? Explain 1. and 2. separately. Note that Faculty A and B are both tenured, so they are NOT concerned with losing their positions at UIC.