This pending legislation will alter existing pension plans and 401k plans. President Bush is expected to sign this legislation.  Here's some of the changes to your employer sponsored 401k.  The Baltimore Sun provides an update.

 These are the guidelines Congress spells out:

• Workers must have 90 days to opt out of automatic enrollment without penalty.

• Employee contributions under automatic enrollment must be 3 percent of pay the first year, and gradually rise 1 percentage point a year until reaching 6 percent in the fourth year. Contributions can stay at 6 percent, or employers have the option of increasing worker contributions all the way up to 10 percent.

• The 401(k) must offer at least three diversified investment options, and none of the three can be employer stock. One of those options is likely to be a lifecycle fund - a type of fund that automatically shifts the investment mix as a worker ages, said policy analyst Moore.

• Companies must provide a matching contribution. The formula calls for a dollar-for-dollar match for the first 1 percent of pay that workers contribute. Thereafter, it's 50 cents for every dollar, up to 6 percent of worker's compensation. That boils down to a 2 percent match the first year, with the match gradually rising to 3.5 percent.

• Or employers can set aside 3 percent of compensation for all workers, whether or not they contribute.

• Workers would be vested in the plan after two years.