J. Mark Iwry, deputy assistant secretary for retirement and health policy at the Treasury Department, said automatic IRAs could rely on government bonds an R bond as default investments for employees.
A large number of people let the money in their 401(k) plans languish after they lose their jobs or simply choose to cash out their retirement accounts once they're terminated according to a new report.
Foreign financial institutions appear to be emerging as the most likely buyers of AIG's $100 billion investment management business, as sources noted that interest from private-equity firms has waned in recent weeks.
Investors who are still awaiting payouts from Reserve Management the New York-based firm whose $63 billion money market fund "broke the buck" last year appear to be taking matters into their own hands.
Efforts to provide corporations with relief from new pension funding rules that are kicking in just as stock and bond markets have conked out have drawn opposition from the highest of authorities the current administration.
Less than a year after most major companies found themselves operating with comfortable pension surpluses, many now are staring at the likelihood of ending 2008 with their defined benefit plans well in the red.