Portability, ownership and innovation are three key features of 401(k) plans that make them worth keeping. That was the case laid out by Paul Schott Stevens at a "town hall" meeting in Los Angeles this afternoon. The remarks lay out a defense of the mutual fund-heavy savings vehicle even as the plans have come under attack for the fees charged by mutual fund firms.
The Investment Company Institute's (ICI) chief defend 401(k) plans in the face of media reports of renewed attacks on 401(k) fees.
An ICI spokeswoman confirmed that the Town Hall speech has been on Stevens' calendar for some time.
Stevens' remarks in defense of 401(k)s come just after Demos released research claiming that fees could cut 30 percent from the average American couple's end 401(k) balance.
In the Los Angeles Times, the ICI countered that 401(k) fees will total less than $20,000 for the average couple, instead of the $155,000 Demos estimates.
Demos is a research organization that promotes an equitable economy, robust democracy and strong public sector, according to its Website.
Today at the Millennium Biltmore Hotel in Los Angeles at "Town Hall Los Angeles," Stevens praised 401(k)s for the portable and ownership they provide employees and for the innovation they allow in the retirement plan business.
"The trend toward 401(k) has strengthened Americans' prospects for secure retirement," Stevens said. "The 401(k) fits the needs of American companies and workers, today and tomorrow. It's flexible and rapidly evolving to continue to meet those needs as our society and workforce change."
