Abstract: Some embodiments of the invention include a novel pay plan system and method for mitigating risk and improving employee compensation. In some embodiments, the method converts a single pay raise into an employer contribution to a 401a Plan, thereby causing the effect of this pay raise to become significantly larger in its monetary amount. In some embodiments, the method transforms 401a matching plans to fully serve public schools by combining both a retirement supplement plan and a compensation enhancement plan into a single plan.