This story appears in the
March 2002 issue of
Entrepreneur.
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Maybe the "K" in 401(k) stands for "krazy."
That's how the 48 million Americans who own these retirement
plans feel watching the stock market. One could argue that what
they need most is fewer Enrons, but some in Congress say better
investment advice from employers is the answer.
Right now, entrepreneurs can't bring in investment advisors
to help workers allocate their pension plan assets because the 1974
Employee Retirement Income Security Act (ERISA) makes employers
liable for any advice given. The Retirement Security Advice Act
(H.R. 2269), sponsored by Rep. John Boehner (R-OH), would change
that. Passed by the House, it eliminates the ERISA
liability--though employers remain responsible for prudently
selecting and reviewing the advisor.
Organized labor and some Democrats oppose the bill, saying that
though it requires advisors to disclose fees and potential
conflicts of interest, such disclosures would be provided in small
type or technical language at a time separate from when workers are
being advised.
H1-B or Not to Be
Rep. Thomas Tancredo (R-CO), chair of the Congressional
Immigration Reform Caucus, is pushing to drop the H1-B visa cap to
65,000 per year (from 195,000) and reduce it by 10,000 for every
quarter percentage point the unemployment rate exceeds 6 percent.
Companies use H1-B visas to bring in temporary workers from
overseas who have advanced training in skills in short supply here.
In the late 1990s, H1-B was a pipeline for information technology
employees.
Stephen Barlas is a freelance business reporter who covers
the Washington beat for 15 magazines.