Guidance on Y2K fiduciary liability, from Public Welfare Benefits Administrationgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
To whom it may concern: from the Pension and Welfare Benefits Administration, a section on Y2K---PWBA reiterates guidance on Y2K fiduciary liability and releases sample questions its staff will use during plan investigations. PWBA Deputy Assistant Secretary, Alan Lebowitz testifies on Y2K before the Senate Special Committee on the Year 2000 Technology Problem. Labor Department issues press release and Fiduciary-Related Questions & Answers warning employee benefit plan administrators about Y2K problems.
Alan Lebowitz' testimony was given on Sept. 17, 1998. This seemed interesting:Finally, due to the pervasive nature of the Year 2000 problem, it may not be possible to prevent a disruption of computer operations. In recognition of that possibility, a plan fiduciary must determine how best to protect the plan and its participants and beneficiaries through the establishment of a contingency plan that will be implemented in the event the plans essential operations are affected.
As did this:The obligation to consider Year 2000 compliance is especially important for employers providing retirement benefits through 401(k) plans. Over 25.2 million American workers are active participants in 401(k) plans. Workers who participate in 401(k) plans contribute part of their salary towards their retirement savings and may, in many instances, assume responsibility for directing their own investments from investment options selected by the plan fiduciaries.
PWBA strongly encourages plan administrators to disclose to their participants and beneficiaries the extent of the plans Year 2000 preparedness and the steps being taken to ensure that the Year 2000 issue does not interrupt the operation of the plan or participants and beneficiaries access to their individual accounts. In addition, because information regarding Year 2000 compliance may be necessary to make an informed investment decision, participants and beneficiaries in 401(k) plans who have responsibility for directing their investments, like plan fiduciaries, should consider Year 2000 issues when determining how to invest their retirement assets.
Some here are likely in a 401(k) plan. Check with your plan administrator.
-- Tom Carey (firstname.lastname@example.org), February 18, 1999
Good post. Hope their admonitions work. Thanks,
-- Watchful (email@example.com), March 20, 1999.