...The existing Abandoned Plan Program (click here) provides streamlined termination and distribution procedures for abandoned individual account plans, including 401(k) plans, under which benefits may be distributed in a manner that can substantially reduce fees charged to participants' accounts for, among other things, annual reporting, legal compliance and other administrative services, including termination costs. By making this streamlined process available to Chapter 7 bankruptcy trustees, the time and resources required to "wind up" a bankrupt company's retirement plan can be significantly reduced. As a result, plan participants likely will see fewer administrative and termination fees charged to their accounts and should have access to their money sooner.
"The rule we're proposing today is designed to help workers and retirees of bankrupt companies gain access to their retirement money sooner. Far too often, the retired workers of these companies are unable to obtain their hard-earned retirement savings in a timely way. The legal status of a former employer should not impede retirees' access to their own funds, especially at the very time they need them most," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "The proposed rule would extend the department's current Abandoned Plan Program to these retirement plans, and enable Chapter 7 bankruptcy trustees to more quickly and efficiently distribute retirement benefits to participants. The rule also would reduce the possibility of participants' accounts being eroded by excessive and unnecessary fees."...
Ya know, I think it is. Can't help but wonder how many companies Bain Capital bankrupted and dumped all those people on the good 'ole USA Department of Labor.
Vulture Capitalists will do it every time.
July 26, 2011
...A key part of EBSA's job is establishing policies (click here) that safeguard the money that workers and employers set aside for workers' retirement. There are about 48,000 private-sector defined benefit plans that hold approximately $2.6 trillion in assets.(1) In addition, there are nearly 670,000 private-sector 401(k) and other defined contribution account plans that hold about $3.9 trillion in assets.(2) Individual Retirement Accounts (IRAs) hold an additional $4.7 trillion.(3) In fact, nearly 50 million households own some type of IRA. That number represents more than 40 percent of the households in the United States.(4) Americans' retirement security depends in large measure on the sound investment of this money. While some investment decisions are made by large professional money managers, today most are made by individual workers who must manage their own 401(k) accounts and IRAs. To guide their decisions, workers often rely on advice from trusted experts....
See what the American people would have given up if President Obama wasn't elected. There was a lot on the line wasn't there? Does everyone understand what would have happened after Romney took office? It would have been completely devastating to the Middle Class.
July 26, 2011
...A key part of EBSA's job is establishing policies (click here) that safeguard the money that workers and employers set aside for workers' retirement. There are about 48,000 private-sector defined benefit plans that hold approximately $2.6 trillion in assets.(1) In addition, there are nearly 670,000 private-sector 401(k) and other defined contribution account plans that hold about $3.9 trillion in assets.(2) Individual Retirement Accounts (IRAs) hold an additional $4.7 trillion.(3) In fact, nearly 50 million households own some type of IRA. That number represents more than 40 percent of the households in the United States.(4) Americans' retirement security depends in large measure on the sound investment of this money. While some investment decisions are made by large professional money managers, today most are made by individual workers who must manage their own 401(k) accounts and IRAs. To guide their decisions, workers often rely on advice from trusted experts....
See what the American people would have given up if President Obama wasn't elected. There was a lot on the line wasn't there? Does everyone understand what would have happened after Romney took office? It would have been completely devastating to the Middle Class.
