Another option is to adopt a Cash Balance Plan, which is used in Nebraska and by some large private employers.

FORBES: Charter Schools, Pensions and Golden Handcuffs

In a cash-balance plan, the company contributes a set amount of salary for each worker every year to a theoretical account for him (even though the money is actually managed in one big pot), and then credits his account with some guaranteed annual return--typically the yield on 30-year Treasuries.

FORBES: Magazine Article

Workers Wayne Tomlinson, Alice Ballesteros and Gary Muckelroy brought the suit in 2004, arguing that by switching its defined benefit pension plan from a final average pay formula to a cash balance formula, El Paso set payments for older, longer-service employees at significantly lower levels.

FORBES: Ledbetter Law Fails To Save El Paso Workers' Suit