Despite initially strong support in the wake of the Enron scandal, a proposal for a twenty percent maximum limit on employee 401(k) investment in their employers? stock has been abandoned due to its failure to garner the support expected from organized labor. The measure was intended to protect the large numbers of workers who have only vague and seriously flawed understandings of 401(k) plans from attempts by employers to convince employees to bolster failing company stock with their retirement savings. Ironically, union officials have attributed their inability to support the measure, to rank-and-file opposition stemming from a misunderstanding of the role 401(k)s play in their post-retirement income.
See PETER G. GOSSELIN, Los Angeles Times, April 21, 2002