Employers at risk when 401(k)s lose

October 2008
Las Vegas Business Press (10712186);10/27/2008, Vol. 25 Issue 43, p16
The article reports on the risks that employers who sponsor 401(k) plans face as stock prices continue to fall in the U.S. Experts warn that the downturn in the market can cause people who lost money in 401(k) plans to look for someone to blame and may sue their employers to recover losses. According to analysts, employers are responsible for the plan investments they sponsor under the Employee Retirement Income Security Act (ERISA). As stated, 401(k) are both savings and retirement plans for most people and a way for employers to attract good employees. INSET: Time to get out? Nope.


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