It does not provide an adequate standard of living for our current economy. Currently the benefits distributed by social security exceed its revenues received by way of payroll taxes. This is because there are more people opting to receive benefits earlier due to unemployment and fewer people paying into the system because of unemployment. The social security system could eventually not be able to support the needs of seniors in the U.S. The time of employer funded defined benefit plans is long gone. It isn’t economically viable in today’s economy for the employer to bear the cost of completely funding its employee’s retirement and also one that is indexed to inflation. With recent legislation, including the Pension Protection Act of 2006, employers are becoming increasingly important in leading the work force into an era of self-funded retirement. As plan sponsors, employers are entering into a new fiduciary relationship with their employees. Employer’s need to implement pension plans that are efficient, that satisfy compliance regulations, that suit their cash flow and provide the retirement benefit at the least cost possible.