Firms Under Suspicion
of 401k Abuse

PENSIONS: Government Says some are improperly
diverting employee contributions.

Associated Press

from The Los Angeles Times, Business, Part D Page 3, November 23, 1995
partial reprint; contact The Los Angeles Times for complete text

EXCERPT:

"The government suspects hundreds of companies of improperly diverting employee contributions intended for (company 401k plans).... The Labor Department... is investigating 303 companies for abuses and said 100 companies have already agreed to restore more than $2.6 million in contributions that were never deposited in employee 401k retirement accounts."


OTHER POINTS:

-- DOL "expressed concern that misuse of 401k contributions may be replacing under-funding of traditional pension plans as a problem."

-- 401k plans are quickly becoming the dominant retirement plan -- the only at many companies.

For complete text, contact The Los Angeles Times.