Battling Over 401(k) Reform
President Bush announced that he has ordered his economic team to "come up with recommendations how to reform the system to make sure that people are not exposed to losing their life savings as a result of bankruptcy, for example." Senators Barbara Boxer and Jon Corzine have introduced legislation that would limit the amount of company stock in 401(k) plans, allow employees to freely sell their company shares and provide workers with more information about investment diversification. Many employer groups are concerned that if enacted these proposals might discourage employers from offering 401(k) plans or prevent companies from making matching contributions.
See Liz Pulliam Weston, Los Angeles Times, January 10, 2002