Sen. Edward M. Kennedy, D-Mass., and Rep. George Miller, D-Calif., asked President Bush to act now to protect 401(k) money, instead of waiting for Congress to enact legislation. Mr. Bush was asked to use existing regulatory authority under federal pension law to require plan sponsors to appoint independent fiduciaries acting solely in the interest of participants; eliminate employer-imposed restrictions on moving money if a company is failing; and ensure employers use independent financial professionals to offer investment advice.
The request, made in a letter to Mr. Bush, also recommends that all legal means be used to ensure the assets of WorldCom and its top executives are preserved for compensating participants who lost their retirement savings if the company declares bankruptcy.
