chapter 2

company stock got the double whammy because their pension funds went bust and so did their stock.

      Though it may seem that employees are virtually powerless against how their company might invest their money, this is not altogether true.  There are rules set forth from the Internal Revenue Service and the U.S. Department of Labor that control how employers  construct their 401(k) plans.  These rules require companies that run their own retirement plans to act in the best interest of the employee.  This seems like the employees have an advantage over the employers now.  But what the rules don't say is how specific the company must be when acting in the best interest of the workers.  There are obviously some specifics that must be compromised should a court case come about. 

      There are many important economic issues that face the lives of each American each day.  Some are large and some are small.  No matter what the size, it is important to take into account that these issues affect a large number of people, no matter what the situation.  The recent issue of corporate stock matches is one that has affected a lot of people both locally, nationally, and internationally.  Based on the information gathered, it is safe to say something needs to be decided on how to handle company matches on 401(k) plans.  The best decision would be to leave it up to the court to decide what is in the best interest of the people and have every company and employee abide by those precedents.  It seems that is the only fair way.

Bibliography

Sasanow, Richard.  The 401 (k) Book.  New York:  Henry Holt and   Company, 1996.

Davenport, Jim.  The State.  May, 1995