Political Quotes

“Over the past twenty years, this country has witnessed a revolution in the way American workers save for their retirement. The central feature of this revolution has been the shift from defined benefit to defined contribution plans, and, in particular, the explosion in the growth of 401(k) plans. Through employer-sponsored 401(k) plans, tens of millions of middle class Americans have entered the investment class, many of them encountering their first exposure to the workings of the stock markets. This trend has important implications with respect to the retirement security of these workers. Under the defined benefit model, the risk and responsibility for making prudent investments rests with the employer. At the end of the day, the employer is on the hook to provide the promised benefits. Should the employer fail to meet this obligation, the federal government, through the Pension Benefit Guaranty Corporation, provides added protection to make sure those benefits will be there when workers retire. In the 401(k) world, however, the risk and the responsibility rest with the worker.”