Retirement plans have long been used by employers to attract new talent. For years, defined benefit plans (i.e. pension plans) were in vogue. These plans were great for employees, because they offered them a guaranteed monthly payment at retirement - the payment was typically determined by a combination of your average or final salary, years of service with the company, and age. Because the pension payment was based on a set formula rather than market or investment performance, savers had the luxury of taking a more passive role in their retirement planning.