About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

11 Lewis & Clark L. Rev. 305 (2007)
Is It Time to Admit the Failure of an Employer-Based Pension System

handle is hein.journals/lewclr11 and id is 323 raw text is: IS IT TIME TO ADMIT THE FAILURE OF AN EMPLOYER-BASED PENSION SYSTEM? by Susan J Stabile* In her contribution to the Business Law Forum, Susan Stabile paints a pessimistic picture of the state of retirement security in the United States. She examines two aspects of the failure of an employer-based pension system, focusing first on the problems associated with defined contribution plans such as 401(k) plans, which have become the dominant means by which employers offer their employees pension coverage, and second, on the reality that millions of employees lack any pension coverage at all. She argues that the failures of the employer- based system can not be rectified by incremental changes and that serious consideration must be given to alternative models of providing Americans with retirement security. Although recognizing that neither of the models she discusses-i.e., the provision of a government pension for everyone and movement to a mandatory employment-based system with more stringent regulation than currently exists-would be politically easy to enact, she argues that some major overhaul is needed if we remain convinced that adequate retirement security is an important social goal. 1. IN TR O D U C TIO N ..................................................................................... 306 II. THE MOVE TO DEFINED CONTRIBUTION PLANS .......................... 307 III. THE FOLLY OF RELYING ON 401(K) PLANS TO PROVIDE RETIREM ENT SECURITY ..................................................................... 310 A. Major Problems Associated with 401(k) Plans ................................. 310 1. Failure of Employees to Participate ........................................... 311 2. Failure of Employees to Contribute Sufficient Assets ................. 311 3. Participant Selection of Investment ............................................. 312 4. Lack of G uarantee ....................................................................... 314 5. Limited Redress Against Fiduciary Failures ............................... 314 B. Attempts to Address 401(k) Plan Shortcomings ................................. 317 1. Approaches to Increasing Employee Participation and C ontributions ............................................................................... 3 17 Dean George W. Matheson Professor of Law, St. John's University School of Law; Fellow, Vincentian Center for Church and Society. J.D. 1982, New York University School of Law; B.A. 1979, Georgetown University. This Article was written for and presented at the Twelfth Annual Lewis & Clark Business Law Forum on The Aging of the Baby Boomers and America's Changing Retirement System, held on September 29, 2006. I am grateful for the helpful comments I received from the other forum participants.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most