Monday, August 13, 2007

Company Schlock ... Uh, Stock

On August 9, 2007, the U.S. Department of Labor (the "USDOL") announced a final regulation implementing its authority to assess civil penalties against pension plan administrators who fail to give employees notice of the right to sell company stock in their pension plan accounts. By motivating plan administrators to provide such notice, the USDOL hopes to encourage employees to diversify their pension portfolios, thereby helping to avoid disasters such as that involving Enron where significant portions of employee retirement funds were invested in the company's stock.

I've been fairly impressed with the USDOL's recent efforts. I hope it keeps up the good work.

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