Participants in 401(k) plans frequently assume all the risk and responsibility of investment selection with no opportunity to determine the universe of investments. According to the most recent survey conducted by KPMG Peat Marwick "Retirement Benefits in the 1990's:1997 Survey Data," the individual(s) approving the selection of investments, investment managers and strategies is likely to be someone named by the plan sponsor. Plans which were intended to be "solely in the interest of the plan's participants and beneficiaries" almost always exclude non executive employee participation in investment selection. The vast majority of employers surveyed (76%) offer nine or fewer investment options, hardly sufficient considering the diversity of investment philosophies and performance requirements of participants.

Involving plan participants in the process of determining the universe of investment vehicles available in their plans should encourage greater participation in these plans. This could be an opportunity to move toward fair and equal retirement investment for American citizens and allow for inclusion of socially responsible investment and community targeted funds

In an effort to promote fairness, democracy and choice in retirement funding, employees should be able to participate in the process of investment "menu" selection for defined contribution plans proportionate to employee assets in the plan.

Workers participating in defined contribution plans should be included in selecting the investments offered within the plan. There should be a correlation between plan participation and investment selection. For example, if 75% of the assets of the plan have been contributed by the workers (or will be in a new plan) and 25% by the employer the investment decisions should be made by a committee comprised of 75% employee-determined representatives and 25% employer-selected representatives. Workers would have an incentive to become more educated and involved in their retirement investments if they had a choice. If workers were included in the process it could also lead to a higher rate of plan participation. Additionally, investment selection committees with high participant involvement might help protect plan sponsors (employers) from some future liability as fiduciaries.