COLLECTED WISDOM™ On Enron and Its Impact On 401k Administration

The Lessons A Plan Sponsor Can Learn From Enron - Summary: What duty does a plan sponsor have to share information, educate participants about the risks of certain investments, and to restrict an employees ability to take actions to protect their retirement savings? Located on: 401khelpcenter.com

Pension Expert Analyzes Fiduciary Duties in Light of Enron - Summary: With Enron workers claiming millions of dollars against plan fiduciaries, many plan sponsors and administrators are taking a serious look at their own situations and what can be done to protect themselves as well as the plan participants. In a recent audio conference, Protecting Your Company's Retirement Plan After Enron, sponsored by Thompson Publishing Group, Inc., pension attorney Michael Melbinger shed light on the fiduciary duties associated with retirement plan investments in employer stock. Located on: Benefitslink.com

Enron Emails On 401k "Blackout" Released - Summary: Two emails that Enron sent workers concerning the "blackout period" of the company's 401k plan were released on January 15, 2002 by The Gottesdiener Law Firm which filed suit in November against Enron Corporation, top Enron officials, Arthur Andersen and other defendants in federal court in Houston to recover some $1 billion in Enron employees' retirement savings. Gottesdiener claims the emails show the Enron's "callous disregard" for its employees. Located on: 401khelpcenter.com

DoL Announces Agreement To Replace Enron Pension Plan Officials - Summary: The agreement, signed by the Labor Department and Enron Corp., requires Enron to pay the independent fiduciary's fees for three years, up to a maximum of $1.5 million per year, plus associated expenses. These expenses will include the cost of any related services, such as outside legal or accounting services, incurred by the independent fiduciary. Located on: 401khelpcenter.com

Enron Has Little Effect on 401k Participants' View of Company Stock - Summary: A new study released today by Boston Research Group indicates that despite a high level of awareness of the Enron situation, very few 401k participants who hold company stock in their retirement account have decreased their holdings in company stock. Furthermore, only a small minority feel they are taking substantial risk or are uncomfortable with their investment in their company's stock. Located on: 401khelpcenter.com

The 'Enron problem' - Summary: In retirement circles, they're already calling it 'the Enron problem.' Plenty of 401k's are packed with company stock. With so much at stake, supporters and critics are squaring off. Located on: CNN Money

New Role Emerging for 401k Providers - Summary: In the wake of Enron, employers are looking to 401k plan providers to steer employees to appropriate investment options and clearly disclose any risks associated with these retirement plans. Particularly in the wake of Enron's apparent demise and the loss of retirement funds suffered by many companies' employees, the need for investment advice is growing. Located on: 401khelpcenter.com

Survey Reveals The Lessons of Enron May Still Be Unclear - Summary: The collapse of Enron stock has made the vast majority of investors think twice about the way they invest. In fact, 72 percent admit they have changed their investment behavior as a direct result of Enron news, according to a new survey from Charles Schwab & Co., Inc. Even if they have changed their investment behavior, it hasn't caused them to diversify. The survey indicates that only 27 percent of the survey respondents say they now "diversify more." Located on: 401khelpcenter.com

Plan Sponsors Told of Changing Fiduciary Standards - Summary: The Enron case will eventually find its way to the Supreme Court, and whatever the extent of its ruling, the fiduciary role of the plan sponsor is being redefined. Located on: 401khelpcenter.com

For further information, see: Plan Fiduciary Duty

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