401(k)s Still Favored by Employers, Workers Business Insurance (09/30/02) p.T3; Greenwald, Judy
Despite the Enron debacle and the decline of the stock market, workers have not rushed to unload their 401(k) plans and employers have made only minor changes to retirement plans, though some employees have become more conservative in their investments. According to a survey conducted by Hewitt Associates, 62 percent of companies that formerly said they placed restrictions on when 401(k) plan participants could sell their company stock have now lifted or plan to lift those limitations. Plan participants' cautious attitudes have spurred employers to reassess their investment options, offering more conservative investment options, "lifestyle" funds that are fitted to meet the participant's age and risk tolerance, and more education and investment advice. Experts say that the fact that there have been no significant drops in employee contributions to 401(k) accounts shows that participants have faith in the long-term success of those accounts.