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Three And Possibly Four Lessons About Erisa That We Should, But Probably Will Not Learn From Enron, Norman Stein

Norman P. Stein

This Article focuses on three particular shortcomings of the statute: ERISA sections 404(a)(2) and 407(b), which for defined contribution plans relax regulatory requirements restricting investment in stock of the sponsoring employer; ERISA section 404(c), which provides incentives for firms sponsoring defined contribution plans to shift responsibility for portfolio allocation to plan participants; and ERISA section 408(c), which expressly permits directors and employees of a plan's sponsor to serve as plan fiduciaries and implicitly permits them to make critical judgments on issues pitting the interest of the plan's sponsor (or the managing employees of the sponsor) against those of plan participants. …