employer responsibility in 401k management

[2tjohnsons]

Three years ago our company changed 401k providers. The available funds that were chosen for us were all high tech related stock which looked good at the time. I and many others have experienced loses all three years, even during boom markets. We understand that there are more stable funds available, but our corporate headquarters will not allow any changes. Is it legal for a company to force employees to stay in a retirement program that is clearly harming my chances for retirement?

 

[ALawyer]

Employers create 401K and similar plans as employee benefits to help attract, retain and motivate employees. All such plans, by law, have to operate in the interest of the employees and NOT the employer.

Having a plan that does not do that is both expensive to the employer and counter-productive.

Nearly every plan provider (usually a mutual fund complex or insurance company) has a wide range of investment choices, some fixed income choices and/oir bond funds and others stick index funds and higher risk managed staock funds.

For some reason this plan provider does not, unless you are mistaken. That baffles me. I'd write to the CEO of the company and ask why the choice of investment media is not broader.