INTRODUCTION
Workers have increasing difficulty achieving retirement income security for several reasons. Many employers have stopped sponsoring Defined Benefit (DB) Pensions. They find that increased longevity, low rates of investment return and mark-to-market accounting, have made these plans extremely costly and volatile. Marketplace volatility has exacerbated the problem.
At the same time, the financial crisis of 2008/9 has shown the frailty of achieving retirement income security through DC plans.
This paper attempts to find a new retirement income model that minimizes the risks for both sponsors and workers and maintains most of the strengths of both DB and DC pensions.