Congress Urged To Avoid Knee-Jerk Reaction In Enron’s Wake
By
Washington
Insurance agents and business groups are urging Congress to avoid placing undue restrictions on defined contribution plans in the wake of the collapse of Enron Corp., Houston.
“The Enron situation has certainly focused attention on 401(k)s and the general issue of retirement security,” said Dave Evans, vice president of retirement and financial planning for the Independent Insurance Agents of America, Alexandria, Va.
“However, we urge Congress to be careful because the devil is in the details,” Evans said at a recent House Education and Workforce Subcommittee hearing.
From IIAA’s perspective, he said, the major issue is a proposal to cap a “blackout” period for 401(k) plans. The blackout period involves a specified time following a change in 401(k) plan recordkeepers in which participants cannot change the account investments.