Market-Based Defined Benefit Plans for Talent Retention

This guide discusses the concept of market-based defined benefit (DB) plans as a strategic approach for employers to attract and retain talent in a competitive workforce environment. It outlines the advantages of reintroducing DB plans, which have fallen out of favor due to perceived costs and complexities. The text details how these plans can provide financial security, equitable benefits, and workforce management tools. It explains two primary types of market-based DB plans: cash balance plans and variable benefit plans, highlighting their features and benefits. The guide emphasizes the importance of these plans in addressing the needs of diverse employees, particularly part-time and lower-income workers, who often face disadvantages in traditional defined contribution (DC) plans. By offering guaranteed lifetime benefits and flexible funding options, market-based DB plans can enhance an employer's ability to manage talent effectively and improve overall workforce stability.