[Verse 1] Two types of pension plans you need to know Defined benefit and contribution, here we go DB promises payments when you retire DC builds accounts that workers acquire Investment policy statements guide the way Different rules for different plans each day [Chorus] DB needs Duration matching for the ride Liability driven investments as your guide DC gives Choices to the working crowd Personal risk tolerance speaking loud Remember DB-D, Duration and Driven DC-C, Choices that are given [Verse 2] Defined benefit plans have obligations Promised payments across the nation Young workforce means longer duration Mature workforce needs shorter preparation Asset liability matching is the key Bonds and duration help set you free [Chorus] DB needs Duration matching for the ride Liability driven investments as your guide DC gives Choices to the working crowd Personal risk tolerance speaking loud Remember DB-D, Duration and Driven DC-C, Choices that are given [Verse 3] Defined contribution shifts the risk To individual workers, choices they must pick Age appropriate funds help guide the way Target date funds for retirement day Education matters for the employees Investment options like a shopping spree [Bridge] Funding ratios tell the DB story Over funded, under funded glory Regulatory rules keep plans in line ERISA standards help them shine Risk tolerance differs between the two DB conservative, DC depends on you [Chorus] DB needs Duration matching for the ride Liability driven investments as your guide DC gives Choices to the working crowd Personal risk tolerance speaking loud Remember DB-D, Duration and Driven DC-C, Choices that are given [Outro] Pension fund policies need special care DB promises must always be there DC empowers workers with their choice Both need policies with a guiding voice
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