BLOOMINGTON - You're on your own for retirement, Twin City financial planners said in response to new federal requirements on employer-funded pension plans.

President Bush has said he will sign legislation that, in general, requires companies to balance their employee pension obligations over the next seven years.

Another provision also allows companies to enroll employees in 401(k) plans and deduct money from their paychecks to fund them, even if employees don't sign up for the programs.

Pension obligations are so under-funded that some analysts questioned whether the move would speed up the extinction of traditional pension plans funded solely by employers.

"Those programs are kind of a dinosaur. They're going away, especially in corporate America," said Eric Raufer of Edward Jones Investments in Bloomington.

U.S. pensions face an estimated $450 billion funding shortfall, according to the Pension Benefit Guaranty Corp., the federal agency charged with rescuing failed pension plans.

That shortfall has steered companies away from traditional pensions, opting instead to offer employee-funded, employer-matched benefits like 401(k) plans, said Carol Burroughs of Forward Financial Planning in Normal.

"Going forward, people are going to have to provide for their own retirement," she said. "People will use their 401(k) as the primary provider of financial security for retirement.

"Sometimes, it's more advantageous - if you meet the income requirements - to set up a tax-deferred IRA (Individual Retirement Account). I've seen some 401(k)s with some less than desirable ways for employees to invest money. If you set up an IRA, you have total control on how you invest those dollars."

The best bet, Burroughs said, is to spread nest eggs through many baskets, so financial security after retirement is not dependent on 401(k) plans or IRAs.

The benefit of this legislation, she added, is that companies may automatically enroll employees in 401(k) plans, thus providing retirement plans to those who lack knowledge on the subject or ignore the importance of saving for retirement.

That comes at a cost to business owners, however.

"Obviously it will have an effect on the bottom line," said Mike Malone, executive director of the McLean County Chamber of Commerce. "The added paperwork on their financials will increase substantially."

The Associated Press contributed to this report.