What Should Congress Do About 401(k)s?
Thursday, January 31, 2002
Under the old (defined-benefit) pension system, the investment returns were good, but workers were penalized for switching jobs. Under the new (defined-contribution) system, pensions are more portable, but the returns are too low to fund adequate retirement incomes.
Why are investment returns so low in most 401(k) plans?
Who benefits and who loses from investing in 401(k)s?
How can we avoid future Enron-type debacles?
How can federal policy solve the 401(k) problem without burdensome new regulations?