You are the CFO of Soft Tech (ST), a software company that is relatively new but already has gone public and quite profitable. The company is located in Cambridge, MA, with 2,000 employees. Of those employees, 20 are high powered executives with average cash compensation of $400,000 per year and all 20 are older than 50. But most of its employees who are computer coders who have average cash compensation of $60,000 per year and who are all under age 40. ST currently does not have any type of retirement plan. You are asked by the board of ST to present a proposal for the company to offer one or more retirement plans to its employees.

A. Would you recommend that ST adopt a defined benefit plan? Why or why not?

B. What types of retirement plans would you suggest that ST adopt, and how should these plans be offered by ST to its employees?

C. What specific investment options would you suggest that ST provide for its retirement plans?