Two competing bills in the House and the Senate that would reform 401(k) plans to protect investors in the wake of the Enron bankruptcy appear to have polarized legislators. The two biggest points of contention are whether 401(k) investors should be allowed to own company stock and whether mutual fund companies in a plan are capable of providing objective investment advice.

Rep. John Boehner (R-Ohio) blasted Democrats in the Senate late last month for their failure to pass a bill that would reform 401(k) rules. Speaking before a meeting of the International Foundation of Employee Benefit Plans of Brookfield, Wis., Boehner said that the House had "responded quickly" to the call for reform after Enron, a Houston energy trader, declared bankruptcy last year, draining the 401(k) plans of many of its workers

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.