Penalties Sought in Pension Violations Boston Globe Online (05/21/02) p.F1; Lewis, Diane E.
U.S. Rep. Bernard Sanders (I-Vt.) stated that he would seek reprimands for those companies that underpaid their retirees through cash balance plans. Three out of the 13 companies cited in the U.S. Department of Labor study--Markem Corp., First Allmerica Financial Life Insurance, and Asea Brown Boveri Inc.--failed to pay retirees money they accrued in their cash balance plans, through errors in projecting and discounting benefits, calculating opening balances, annuity conversion factors, and cost-of-living adjustments. Additionally, the companies failed to use the interest rates legally required when projecting pension benefits for employees. Sanders plans to file legislation to encourage closer monitoring by the Department of Labor or the Internal Revenue Service.