Even if WorldCom totally collapsed, it would not have harmed the nations 401(k) savings and pension plans, according to the
Likewise, of the $1.5 trillion that 401(k)s and pension plans hold in bonds, if these plans had owned all of the $38 billion in WorldCom bonds, it would have represented 2.5% of their bond holdings.
Some defined contribution and defined benefit plans had large absolute dollars invested in WorldCom, noted EBRI President and CEO Dallas Salisbury. However, in context of total pension assets, were a firm of the size of WorldCom to totally fail, it would not harm the overall 401(k) and pension system, Salisbury said.
Unlike Enron, WorldCom did not require employees to match their 401(k) company matching funds in company stock, Salisbury added.