Article: Plan sponsors ponder reaction to mutual funds.(HR News)

Sponsors of 401(k) plans are nervously debating their options and legal obligations in light of an extensive investigation by the New York attorney general that has implicated many of the nation's largest mutual fund families.

"Employers are only now just beginning to understand the long-term ramifications of this scandal," said Rick Meigs, president of the 401khelpcenter.com LLC, a Portland. Ore.-based retirement benefits consulting firm. "This scandal affects all employers that sponsor defined contribution retirement plans, which ultimately represents millions of workers and billions of dollars."

The allegations revolve around numerous mutual fund ...

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