15 July 2002 The Honorable Charles E. Grassley
Dear Senator Grassley: The implosion of 401(k) plans at Enron, Global Crossing and WorldCom and the very substantial financial losses incurred by plan participants have raised justifiable public concerns about the adequacy of existing safeguards for retirement savings held in participant-directed defined contribution plans, especially those at big corporations that are heavily invested in company stock. IEEE-USA believes that certain basic reforms are needed to help ensure that tax-favored savings intended for use in retirement will be there when plan participants reach the end of their working careers. First, sponsoring employers must be required to provide personalized benefits statements to all plan participants at least quarterly, not just upon request as required under current law. Such statements should document the performance of all monies invested in participants' accounts and educate participants about the importance of account diversification and the risk and return characteristics of different kinds of investments. In addition, plan sponsors and participants should be allowed to obtain retirement planning services, including un-conflicted investment advice, from qualified investment service providers. Second, plan participants must be allowed to exercise more control over investments in company stock than they can under current law. Workers who invest their own contributions in employer stock should be able to diversify into other options whenever they want to. And as soon as they become vested, participants should be allowed to redirect employer-matching contributions made in company stock into other investments. Your personal support for prompt enactment of legislation that includes these basic reforms will be very much appreciated, not only by IEEE's US members, but by all Americans who endeavor to save for a financially secure retirement in 401(k) and other participant-directed defined contribution plans. Sincerely, LeEarl Bryant With more than 377,000 members in 150 countries, The Institute of Electrical and Electronics Engineers (IEEE) is the world's largest technical professional society. IEEE-USA promotes the professional careers and public policy interests of the 235,000 IEEE members who live and work in the United States. (Similar letter sent to all U.S. Senators) | Top of Page | Policy Log | Public Policy Forum | IEEE-USA | Last Update:
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2002, The
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