U.S. Labor Dept Finalizes Pension Asset Protection Rules
Wall Street Journal Online (10/19/00) Vol. 104, No. 42 p.1; Martin, Fowler W.

A final draft of fraud-prevention rules, set to offer protection of billions of dollars in assets held by small-business pension plans, has been issued by the U.S. Department of labor. Pension plans are generally required to have their annual financial statements audited by a CPA, but because this is a costly endeavor, plans with fewer than 100 participants are excused from the requirement. This exemption has resulted in many abuses, which has damaged worker confidence in such plans, according to Labor Department officials. Labor Secretary Alexis M. Herman said, "We believe the final rule strikes a reasonable balance between enhanced security and accountability for small plan assets while minimizing the administrative burdens and costs to plans and their sponsors."


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