12 Pages Posted: 30 Dec 2007 Last revised: 2 Jan 2008
This Paper discusses a financial cancer discovered deep inside the architecture of 401(k) plans, which has been labeled Yield Disparity. We believe that Yield Disparity is a hidden flaw in our nation's current 401(k) plan fabric contributing to the recent tsunami of class action litigation, which in time may dwarf the tobacco litigation. The Mother of all ERISA Cases will someday, we also believe, judicially reveal Yield Disparity.
A growing number of benefit gurus dream of the day when Yield Disparity will cease to be an unconscionable defect in Corporate America's retirement income paradigm, ignobly ignored to date due to what the Supreme Court will likely characterize some day as a deliberate and willful indifference by retirement Plan fiduciaries having the highest duty known to the law.
Keywords: 401(k), 404(c), ERISA, yield disparity, retirement
JEL Classification: C53, D31, D63, E21, G23, J26
Suggested Citation: Suggested Citation