Questions Regarding Private Retirement Savings Inequities

[Persyko <alpersyko@earthlink.net>]

What a great discussion!  I just have a couple of questions for Ms. 
Weaver and Mr. Reischauer if it is not too late.

I agree with Mr. Reischauer that risk and volatility belong in private 
retirement accounts and company-sponsored plans.  The question then 
becomes why we are not maximizing our private retirement savings 
opportunities.  Why are workers who are not covered by defined 
contribution plans or defined benefit plans limited to a $2,000 
maximum IRA deductible contribution?  Why shouldn't these workers be 
able to fund their retirement savings at the same level as those who 
are offered a 401(k)?  Shouldn't we have automatic payroll deductions 
for IRA contributions similar to a payroll salary direct deposit-- the 
technology is certainly there and this would make it a lot easier for 
the average worker?

Considering that the assets of defined contribution plans are derived 
primarily from rank and file employee contributions why does ERISA not 
require non-executive employee participation in plan provider and 
investment selection proportionate to their assets in the plan?  This 
would ensure that plans offered not only meet the employer's 
requirements but also give equal weight to employees' retirement 
goals, financial objectives and investment philosophies.

How would the investment strategies outlined for either personal 
accounts or proposals to invest a portion of the Social Security trust 
fund address the issues and concerns of investors who currently choose 
only to invest with funds which apply screens tailored to match their 
beliefs, personal values and societal concerns?

Thank you,

Luita Persyko