Puerto Rico - INSIDER highlights
Two articles in particular this month may be of interest to Puerto Rico
employers.
(1) Following the collapse of Enron last year, with its subsequent loss
of retirement benefits heavily invested in Enron common stock, the U.S.
Congress has taken a closer look at 401(k) investments, and especially
those savings plans with high investments in employer stock. According
to the 2000 PRMA Compensation and Benefits Survey, conducted by Watson
Wyatt, 40% of those participants providing a pre-tax savings plan offer
an employer stock fund as an investment option for both employee contributions
and employer contributions. One-fifth of those companies restrict all
employer contributions to be invested exclusively in company stock. Possible
Congressional action on this issue might affect these companies. Read
the story here.
(2) The article entitled: DOL
Okays Bundled Investment Advice Service describes Advisory Opinion
Letter 2001-09A, issued by the U.S. Department of Labor, which permits
offering personalized investment advice to retirement plan participants
under certain restrictions. With the market fluctuations seen these past
two years, many employers have been besieged by employees who seek additional
investment information or advice other than what had been previously allowed.
Sincerely,
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