This opinion explains my postion on removing the password reset and retrival mechanism from the system:

It is my personal opinion that all password reset mechanisms in widespread use today are insecure. If you have high security requirements, such as an encryption service would, do not let the user reset their password.

Most websites use an email loop to authenticate users who have forgotten their password. To do this, generate a random single-use token that is strongly tied to the account. Include it in a password reset link sent to the user's email address. When the user clicks a password reset link containing a valid token, prompt them for a new password. Be sure that the token is strongly tied to the user account so that an attacker can't use a token sent to his own email address to reset a different user's password.

The token must be set to expire in 15 minutes or after it is used, whichever comes first. It is also a good idea to expire any existing password tokens when the user logs in (they remembered their password) or requests another reset token. If a token doesn't expire, it can be forever used to break into the user's account. Email (SMTP) is a plain-text protocol, and there may be malicious routers on the internet recording email traffic. And, a user's email account (including the reset link) may be compromised long after their password has been changed. Making the token expire as soon as possible reduces the user's exposure to these attacks.

Attackers will be able to modify the tokens, so don't store the user account information or timeout information in them. They should be an unpredictable random binary blob used only to identify a record in a database table.

Never send the user a new password over email. Remember to pick a new random salt when the user resets their password. Don't re-use the one that was used to hash their old password.