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The Boston Globe Boston Capital Column.

Knight Ridder/Tribune Business News, July, 2002

By Steven Syre, The Boston Globe Knight Ridder/Tribune Business News

Jul. 4--Lots of new investment ideas hatched and thrived during the relentlessly bullish stock market of the past 20 years. Defined contribution retirement plans were near the top of the list.

The first defined contribution plan appeared in 1982 and the thousands that followed, typically organized as 401(k) accounts, now collect about 75 cents of each new dollar being tucked in some corporate retirement fund. They have some important advantages, particularly for a mobile work force likely to change jobs more often. But there is also a serious downside as the responsibility to manage retirement finance is pushed away from employers and onto workers, the people who are often the...

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