With all of the prevailing data as proof, it might seem slightly insane to suggest that defined benefit pension plans could make a gigantic comeback - and emerge again as America's predominant retirement strategy.
After all, we continue to see major companies scurry to drop their DB obligations and each day brings news of flatter returns and deeper funding deficits for the once-powerful pensions, both public and private.
Rausser said a combination of factors is emerging to help bring DB plans back to the forefront. First, Congress's recently passed MAP-21 (Moving Ahead for Progress in the 21st Century) law will increase liability interest rates and PBGC premiums.
As a method of counteracting the ways that low interest rates have increased pension plan liabilities, Pentegra's analysis suggests the law - whose rates are optional in 2012 but mandated for 2013 and beyond - could see effective interest rates increasing by 140 to 170 basis points. This would cause the value of plan liabilities dropping by 15 percent to 20 percent and funded ratios to drastically increase.