to pay for them. A classic case of the unfortunate consequences of an underfunded pension plan is the 1963 shutdown of Studebaker automobile operations in South Bend, Indiana, in which 4,500 workers lost 85% of their vested benefits. One of ERISA's stated intentions was to minimize underfunding in defined benefit plans. Defined contribution plans, by contrast and by definition, are always "fully funded" so Congress saw no need to provide insurance protection for participants in defined contribution plans. The Enron scandal in 2001 demonstrated one potential problem with defined contribution plans: the company had strongly encouraged its workers to invest their 401(k) plans in their employer itself, violating primary investment guidelines about diversification. When Enron went bankrupt, many workers lost not only their jobs but also most of the value of their retirement savings. Congress imposed fiduciary liability upon employers inside Section 404 of ERISA. See also Bankruptcy in the United States Federal Deposit Insurance Corporation Kline-Miller Multiemployer Pension Reform Act of 2014 Pension Pension Protection Act of 2006 Pension Rights Center Securities Investor Protection Corporation Social insurance Title 29 of the Code of Federal Regulations Notes References Further reading Andrew Douglass and Bradley Kafka, "Legal Trends — Progress for Multiemployer Pension Plans," HRMagazine, Vol. 60, No. 2, 2015, pg. 71; , Employee Benefit Research Institute, "Basics of the Pension Benefit Guaranty Corporation (PBGC)", November 2013 Mary Williams Walsh, "Whoops! There Goes Another Pension Plan", New York Times, September 18, 2005 External links Pension Benefit Guaranty Corporation in the Federal Register 1974 establishments in Washington, D.C. Employee Retirement Income Security Act of 1974 Independent agencies of the United States government Government-owned companies of the United States Corporations chartered by the United States Congress Government agencies established in 1974