EBSA Press Release: Labor Department Announces Consumer Booklet to Monitor Pension Plan Operations [10/03/1996]

Archived News Release — Caution: Information may be out of date.

For more information call: (202) 219-8921
 

A handbook to help workers better monitor the financial operation and investments of their retirement plans was issued today by the U.S. Department of Labor.

"American workers are often the first line of defense to catch problems with benefit programs early," said Secretary of Labor Robert B. Reich. "Although most plans are well run, abuses do occur. We are equipping workers with tools to assist the department in policing plans, and ultimately to preserve pension dollars for their retirement."

"Protect Your Pension" underscores the department's commitment to protect and preserve the hard-earned retirement income of workers through education and vigorous enforcement of the law.

The booklet is a quick reference guide that helps identify who manages pension money and basic rules governing plan operation and investments. It also provides guidance on how to read and understand a plan's annual financial report and explains the general rules governing plan contributions and investments.

A central portion of the booklet discusses useful tips workers can use which may indicate that the law governing pension plans -- the Employee Retirement Income Security Act -- has been broken. Warning signs may include:

• consistent investment losses over several years
• too much money concentrated in one type of investment
• unusually high administrative expenses paid to others for such services as recordkeeping, investment management, accounting or legal services, or
• unlawful business dealings with parties who manage and invest plan money.

Another section shows workers how to calculate the investment return of a plan using plan financial reports, known as the Form 5500 Series. This gives workers a rough idea of how much the plan has earned or lost on investments.

Reich called the booklet a down payment in the department's enforcement efforts to vigorously protect workers' retirement from abuse. He said, "An informed consumer is the best protection against perpetrators who would steal or divert plan money. While financially sound and free of systemic abuse, pensions remain lucrative targets."

Workers who suspect abuse or violations of the law can contact the nearest office of the department's Pension and Welfare Benefits Administration (PWBA), which is responsible for enforcing the law nationwide.

For a free copy of the booklet call the PWBA publication hotline at (202) 219-9247 or through the internet at http://www.dol.gov/dol/pwba.

Archived News Release — Caution: Information may be out of date.