March 7, 2007 |
A political push for greater disclosure of fees in 401(k) retirement savings plans gathered steam Tuesday, as an influential Democratic lawmaker said he planned to shine light on whether an array of service firms were "dipping into other people's money" without good cause. "We have to ask whether all these fees are necessary, and we have to examine whether they are undermining workers' retirement security," said Rep.
March 1, 2007 |
Goodyear Tire & Rubber Co. said it would scrap its pension program for current workers and raise retiree healthcare payments to save as much as $90 million annually. In 2009, Goodyear will replace defined-benefit pension plans with 401(k) programs with matching contributions. Corporate salaried and retail store retirees will pay more for health benefits beginning next year, and some insurance benefits will be canceled, Akron, Ohio-based Goodyear said.
December 27, 2006 |
The Labor Department has filed suit against executives of two defunct textile firms, including one in Santa Monica, demanding the return of more than $100,000 in employee contributions to the firms' 401(k) plan. The suit, filed in U.S. District Court in New York on Thursday, alleges that Richard Haik and Mitchell Ostrover failed to forward employee contributions and loan repayments to the 401(k) retirement plan for employees of Beverly Trimming Co.
December 15, 2006 |
Fidelity Investments is being sued by Deere & Co. workers who claim that they were charged hidden fees in their 401(k) retirement accounts. The lawsuit, filed Dec. 8 in federal court in Madison, Wis., also names Deere and seeks class-action status. The four employees are asking for unspecified damages, as well as an order that excessive fees be returned to their 401(k) plans. Schlichter, Bogard & Denton, the St.
December 10, 2006 |
Jim Elliott, 55, spends his days clambering onto the tops of houses, taking measurements for the wooden trusses his company sells to support roofs through long, snowy winters. Not long ago, Elliott thought his ladder-climbing days would soon be over. With a few more years of work, his 401(k) account would be large enough to let him retire at 60 and spend his days with his three grandchildren. Then Elliott learned that his former employer had looted the company's 401(k) plan.
December 1, 2006 |
Federal regulators should boost their oversight of 401(k) retirement plans and adopt reforms to ensure full disclosure of hidden costs that can cut deeply into the savings accrued by millions of American workers, a government report recommended Thursday. With companies rapidly abandoning traditional pensions, 401(k) plans have become a cornerstone of retirement security for an estimated 47 million people.
October 11, 2006 |
Century City-based Northrop Grumman Corp. and Chicago-based Boeing Co. have joined the list of major companies being sued for allegedly allowing their employees to be overcharged in their 401(k) retirement plans. The suits filed by St. Louis attorney Jerome J. Schlichter last month allege that the employers broke federal law by failing to ensure their workers are charged reasonable fees for management of the plans. Previously named in the suits were Lockheed Martin Corp., General Dynamics Corp.
October 2, 2006 |
For insurance agent Steve Adams, 51, the resentment began two years ago. As he worried whether his stagnant 401(k) account would be adequate for retirement, his wife's employer ended her pension plan, forcing her to rely on a 401(k) as well. Then New Jersey lawmakers raised his property taxes to maintain state workers' pensions. Last spring Adams joined a taxpayer group called Americans for Prosperity that is seeking limits on government employee pensions.
August 25, 2006 |
Persistence pays. The average nest egg for people who have been in 401(k) plans for at least six years topped $100,000 for the first time, according to a survey released Thursday. Their account balances averaged $102,014, up 9.6% from $93,085 in last year's survey. "The discipline of saving pays off," said Sarah Holden, senior economist with the Investment Company Institute, a mutual fund trade group that sponsored the study with the Employee Benefits Research Institute.