Speaking before a national meeting of plan sponsors of American Express Retirement Services recently, David Wray, president of the Profit Sharing/401(k) Council of America, said the nation's defined contribution systems have held up.

"Contrary to recent detractors and high-profile company stock losses, the 401(k) system is not broken," Wray said.

He did call on sponsors to improve their 401(k) plans, however, by offering fewer choices than the average 14.5, prudently monitoring fund performance and removing poor choices, providing financial education and investment advice and supervising the service provider.

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.