Description: The traditional defined-benefit (DB) plan is a type of plan structured to provide the greatest degree of retirement income security, designed to pay out a guaranteed retirement income for the life of the retiree (and, when applicable, a beneficiary). However, over the last several decades, the number of private-sector employees covered under these traditional plans has decreased dramatically and been replaced by defined contribution (DC) plans. In contrast, public-sector retirement plans, which are exempt from ERISA, have seen a much smaller decline in DB plans. There are many differences in the private and public sector that likely contributed to this phenomenon, but ERISA and the many amendments to it has been a major factor.

Description: The SOA Research Institute tasked the Workforce Science Institute to investigate how retirement benefit plans can affect a plan sponsor’s workforce and business results. The following is an interview with Rick Guzzo and Haig Nalbantian co-founders of the Workforce Science Institute who are the researchers on this project. The interview gives a helicopter view of the project as well as provides some “food for thought” on how retirement plans can be designed to produce an effective workforce.