401(k) sponsors to fight changes
Employers and various trade groups are organizing a massive lobbying effort aimed at preventing the more than a dozen proposals for restriction of varying degrees of severity on the way that companies administer the more than $2 trillion in their employees? 401(k) pension plans. While differing in details, most of the proposals limit the percentage of their savings that employees can be required to invest in their own company?s stock, the total percentage of they can invest in their own company?s stock, and the length of time employees can be required to hold on to company stock granted under retirement plans. The coalition of employers and pension plan providers claims that such reforms will destroy their attempts to use 401(k) plans to increase employee loyalty, reduce corporate taxes, and increase the stability of stock prices---all goals the national pension system was never meant to accomplish.