Employee Retirement

Income Security Act

1997 Report to Congress

Employee Retirement

Income Security Act

1997 Report to Congress

U.S. Department of Labor

Pension and Welfare Benefits Administration

Jan.

Apr.

July

Oct.

Feb.

May

Aug.

Nov.

Mar.

June

Sept.

Dec.

What Small Businesses Need to Know

401(k) Fraud Initiative

Top Ten Ways (Las 10 Mejores Maneras)

Women and Pensions:

SIMPLE

SEPs

Lo que necesitan saber y hacer las mujeres
This publication has been developed by the

U.S. Department of Labor,

Pension and Welfare Benefits Administration,

and is available on the Internet at:

http://www.dol.gov/dol/pwba

For a complete list of PWBA publications, call the

toll-free Publication Hotline at:

1-800-998-7542

This material will be made available to sensory impaired

individuals upon request:

Voice phone: (202) 219-8921

TDD: 1-800-326-2577

This booklet constitutes a small entity compliance guide

for purposes of the Small Business Regulatory

Enforcement Fairness Act of 1996.

Introduction ...................................................................

1997 Highlights .............................................................

Message from the Deputy Assistant Secretary............

Overview of PWBA Office Functions...........................

Enforcement ..................................................................

Participant Assistance/Public Education.....................

Exemptions....................................................................

Regulatory Activities.....................................................

Policy and Research......................................................

Accounting and Auditing..............................................

Health Care Task Force..................................................

ERISA Advisory Council...............................................

Table of Contents

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The Pension and Welfare Benefits

Administration (PWBA) of the U.S.

Department of Labor protects the integrity of

pensions, health plans and other employee

benefits for more than 150 million people. The

agency’s mission includes administering and

enforcing the fiduciary, reporting and

disclosure, and coverage provisions of Title I

of the Employee Retirement Income Security

Act of 1974 (ERISA). The provisions of Title I

were enacted to address public concerns that

funds of private-sector employee benefit plans

were being mismanaged and abused.

Since its enactment in 1974, ERISA has been

amended to meet the changing retirement and

health care needs of employees and their

families. The role of PWBA has evolved

continually to meet these challenges. In 1985,

Introduction

1

the Consolidated Omnibus Budget

Reconciliation Act (COBRA) was passed, and

PWBA was charged with issuing regulations

regarding certain notification requirements.

The Health Insurance Portability and

Accountability Act of 1996 (HIPAA), the

Mental Health Parity Act of 1996 and the

Newborns’ and Mothers’ Health Protection

Act of 1996 added new responsibilities in the

regulatory arena. As a result, the agency

established the Health Care Task Force, which

is responsible for providing technical guidance

on how to apply ERISA’s Title I provisions, as

amended by HIPAA and other health care laws

that affect group health plans.

This report details the 1997 accomplishments

of the agency in executing its mission.
1997 Highlights

2

In 1997 the Pension and Welfare Benefits

Administration recorded, among its

successes, the following accomplishments:

PWBA reached a milestone in its national

enforcement initiative on 401(k) plan fraud.

This year, PWBA recovered $37.5 million

for more than 40,000 workers. The agency

also participated in a successful multiagency enforcement initiative that targeted

white-collar crimes directed at private-sector

employee benefit plans.

In conjunction with the American Savings

Education Council (ASEC), the agency

increased public/private partnerships in its

Retirement Savings Education Campaign to

250 members and expanded its retirement

savings educational message and

publications to target minority and small

business audiences.

The agency’s national office public outreach

and customer service activities included

issuing press releases and publications on:

HIPAA interim rules for certification

requirements for all employee benefit plans,

which took effect on June 1; guidance in

interpreting the requirements of ERISA when

dividing pension benefits during a domestic

relations proceeding; and a set of three

pamphlets on small business retirement plan

options. The agency also issued Spanish

language versions of two pension and

retirement savings publications.

In February the agency’s new rule, requiring

employers to transmit employee contributions

into employee benefit plans no later than the

15th business day of the month that

immediately follows the month in which the

contribution is either withheld by or paid to

the employer, became effective.
In 1997 PWBA reached numerous milestones with, and expanded

the scope of, several of its initiatives. I am proud to cite some of

these accomplishments.

The agency’s national enforcement project to reduce the misuse of

401(k) plan contributions and ensure pension security for Americans

made substantial progress. Most significantly, PWBA recovered

$37.5 million for more than 40,000 workers.

Our Retirement Savings Education Campaign expanded its

educational message to target minority groups and small business

owners and, in this connection, issued specific publications and public

service announcements to address their needs. The campaign also

enabled the agency to increase the number of organizations, both

public and private, that focus on savings education in their messages

to constituents.

Interim rules under HIPAA that addressed certification requirements took effect in June, marking

the first phase of providing new health benefit protections for American workers. In this regard

the Health Care Task Force issued nine interim final regulations that implemented provisions under

HIPAA.

In the area of customer service, new publications were introduced ranging from a series of three

pamphlets to educate small business owners on viable retirement options to a booklet that provides

guidance for pension practitioners and attorneys on the procedure for dividing pension assets in

domestic relations proceedings (i.e. divorce). The agency also published two of its publications in

Spanish for the first time.

We continued to work toward the passage of Administration proposals that would simplify pension

rules, improve pension portability, and strengthen protections for plan participants and expand

retirement savings opportunities.

The agency’s Delinquent Filer Voluntary Compliance Program continued to simplify the filing

process and reduce the financial burden of voluntary compliance for small businesses by imposing

smaller fines.

The steadfast efforts of our entire agency — including the legal and research team, auditors,

investigators, accountants, pensions advisors, benefit specialists, and all other professional and

support staff members — were instrumental in 1997 in helping us to continue to meet the task of

securing pension, health and employee benefit plans for America’s workers.

Message from the Deputy Assistant Secretary

3

Deputy Assistant Secretary

Meredith Miller, PWBA
Overview of PWBA Office Functions

PWBA accomplishes its mission through the

collective efforts of six major offices that

either administer policies or carry out

initiatives in the following areas: enforcement,

participant assistance, exemptions, regulatory

activities, policy and research, accounting and

auditing and health care. The agency also

provides staff for a bipartisan, independent

council that appraises the programs instituted

under ERISA and makes recommendations to

the Secretary of Labor.

Office of Enforcement

The Office of Enforcement is responsible for

overseeing and implementing the agency’s

investigative programs. Through 15 regional

and district offices, it conducts investigations

to detect civil and criminal violations of Title I

of ERISA and criminal laws relating to

employee benefit plans.

Office of Program Services

One of the primary ways PWBA satisfies its

mission of protecting pension, health and other

benefits in private-sector employee benefit

plans is by helping plan participants and

beneficiaries understand their rights, and

employers and plan sponsors their obligations,

under the federal pension law.

This function is executed through the Office of

Program Services’ (OPS) Division of

Technical Assistance and Inquiries in the

Washington, D.C., office, and the 15 PWBA

field offices throughout the nation. When

participants write, call or visit one of these

offices, they receive individual assistance from

benefit advisors who explain their rights under

the law and help them obtain benefits if

improperly denied.

Public education is also a significant part of

the responsibilities of PWBA. Through OPS’s

Division of Public Affairs, the agency provides

plan participants, plan sponsors and the

general public with educational publications

and materials that increase public awareness of

basic health, pension and retirement planning

issues.

The Division of Public Affairs also serves as a

liaison between the agency and the news

media. It issues press releases on civil and

criminal cases; answers and directs media

inquiries; holds press events to publicize

agency issues and initiatives; hosts and

arranges briefings on the agency’s mission and

U.S. pension law for foreign delegations; and

arranges speaking engagements throughout the

country for the assistant secretary and other

departmental officials, who deliver the

agency’s message.

Through the OPS’s Division of Public

Disclosure, the agency provides the press and

the public with basic financial information on

employee benefit plans that private-sector

companies file with the Labor Department.

Office of Exemption Determinations

The Office of Exemption Determinations

administers the agency’s program for granting

administrative exemptions from the prohibited

transaction provisions of ERISA. The office

has two divisions. One is responsible for class

exemptions. The other administers the

program for individuals exemptions.

ERISA prohibits certain specified transactions

between employee benefits plans and entities

defined as “parties in interest.” However, it

gives the Labor Department authority to grant

exemptions from these prohibited transaction

restrictions if an applicant can demonstrate

that a transaction is administratively feasible;

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serves the interest of the plan, its participants

and beneficiaries; and protects the rights of the

plan participants and beneficiaries.

The office reviews applications for such

exemptions and determines whether to grant

relief. Individual exemptions relate to a

particular plan or applicant. Class exemptions

are available to anyone who can meet the

enumerated conditions.

Office of Regulations and

Interpretations

The Office of Regulations and Interpretations

is responsible for planning, directing and

carrying out PWBA’s program for the

development and delivery of policy and

technical guidance concerning the application

of Title I of ERISA. It also is responsible for

interpreting certain provisions of the Internal

Revenue Code, the Federal Employees’

Retirement System Act of 1986 (FERSA), and

other laws affecting employee benefit plans.

The office develops regulations and

interpretive bulletins, and issues advisory

opinions, information letters and rulings. It

also develops employee benefit plan reporting

forms and provides training, technical

assistance and other guidance to facilitate

compliance with, and enforcement of, the

fiduciary, coverage, reporting and disclosure,

and other statutory provisions administered by

PWBA.

Office of Policy and Research

In January 1997, the Office of Policy and

Legislative Analysis and the Office of

Research and Economic Analysis merged,

enabling the agency to improve the

coordination of its legislative and applied

research activities. The newly created Office

of Policy and Research provides expert

technical, legislative and research analysis on

health and pension benefits legislation

proposed by the Administration and pending

before the Congress.

Office of the Chief Accountant

The Office of the Chief Accountant is

responsible for enforcing the reporting and

disclosure provisions of ERISA and

administering an audit program to assure

compliance with the fiduciary requirements

of FERSA.

The office also has established several

proactive programs designed to help educate

plan professionals and encourage voluntary

compliance through reduced fines.

The Health Care Task Force

The Health Care Task Force responsibilities

involve planning, directing and carrying out a

program for the provision of technical

guidance concerning the application of the

provisions of Title I of ERISA, as amended by

HIPAA, the Mental Health Parity Act of 1996

(MHPA), and the Newborns’ and Mothers’

Health Protection Act of 1996 (NMHPA), as

well as other health care laws affecting group

health plans. The Health Care Task Force is

responsible for providing regulations,

interpretive bulletins, opinions, rulings, forms,

training, technical assistance and other

guidance to facilitate compliance with and

enforcement of the health care portability, nondiscrimination and other provisions of Title I

of ERISA relating to group health plans that

are administered by the Department of Labor.

ERISA Advisory Council

The Advisory Council on Employee Welfare

and Pension Benefit Plans consists of 15

members, appointed by the Secretary of Labor

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to serve 3-year terms. The members must be

qualified to appraise the programs instituted

under the federal pension law.

Three members must represent employee

organizations — with at least one representing

participants of a multiemployer plan. Three

must be selected from employer organizations,

with at least one representative of employers

maintaining or contributing to multiemployer

plans; and three members must be selected

from the general public, one of whom must

receive benefits from a pension plan.

6

The other six members must be selected from

the insurance, accounting, actuarial

counseling, investment management and

investment counseling, and corporate trust

communities. The law also requires that five

members rotate off the council each Nov. 14

and that no more than eight appointees

represent any one political party.

The remainder of this report discusses the

1997 agency accomplishments.
PWBA continued its efforts to prevent and

alleviate abuse in 401(k) and health plans.

The agency and the Administration announced

that a nationwide crackdown on 401(k) plan

abuse had resulted by June 1997 in a year-todate total of nearly $37.5 million for more than

40,000 workers.

In May the agency also participated with the

Department of Justice in a successful, multiagency enforcement initiative to crack down

on white-collar crimes that targeted the more

than $3.5 trillion in assets held in the nations’s

private-sector pension and employee benefit

plans. The initiative, which was jointly

announced by Labor Secretary Robert B.

Reich and Attorney General Janet Reno,

included more than 70 cases related to pension

plans with more than 150,000 plan

participants.

In June 1997 the agency won a $2.7 million

judgment against Job Shop Technical Services,

Inc., in Farmingdale, N.Y., and Ralph Corace,

the former trustee of the company’s 401(k)

plan funds. Corace had pled guity to

embezzlement of the 401(k) funds in a

criminal case in 1996.

PWBA obtains corrections of civil violations,

either through voluntary compliance or

litigation. In 1997, the agency opened 5,880

civil investigations and 147 criminal

investigations. The agency’s criminal

investigations resulted in 89 indictments.

Overall the enforcement program recovered

more than $342 million for private benefit

plans.

Enforcement

Criminal Cases

The following is a sampling of criminal cases:

United States v. Casey

1/23/97

Suffield, Conn.

Kevin Casey, owner of Construction Industry

Benefits Group, a third party administrator,

was charged with wire and mail fraud and with

making false statements in documents required

by ERISA to cover up a pension fraud

scheme. He sent statements to client

companies advising them that contributions

were made to a Money Purchase Plan covering

their employees. More than $214,000 was

involved in the scheme. He pleaded guilty in

March and was sentenced in June to 12

months imprisonment and ordered to make

restitution of $96,537. This case was

investigated by PWBA and the FBI.

United States v. Lasky

2/06/97

Oceanside, N.Y.

Clark Lasky, who had a prior felony

conviction, was charged in February with

embezzling $750,000 of health plan funds.

The 12-count indictment alleges that Lasky,

president and owner of Employee Health Plan

Administrators, Inc., was the designated

administrator and collective bargaining

representative on behalf of hundreds of

employers that had entered into Associate

Membership collective bargaining agreements

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with Local 119, Brotherhood of Industrial

Workers. Allegedly, Lasky collected monthly

contributions from the employers, but failed to

remit the money to the Brotherhood of

Industrial Workers Fund and converted the

money to his own use. Action is pending.

This case was investigated by PWBA, the U.S.

Postal Inspection Service and the Labor

Department’s Office of the Inspector General,

Division of Labor Racketeering.

United States v. Cibellis

3/13/97

Newark, N.J.

Ellen Cibellis, former plan administrator and

union office manager for Painters Union

District Council 10, was charged in March

with embezzling more than $400,000 from the

union’s general fund and three employee

benefit funds that were sponsored by the

union. She had been employed by the union

for 18 years. Cibellis was also charged with

arson after she allegedly set fire to a storage

closet where the records were kept. This case

was investigated by PWBA, the Labor

Department’s Office of the Inspector General,

Division of Labor Racketeering, and the

Bureau of Alcohol, Tobacco and Firearms.

United States v. Fitzgerald

3/13/97

Bronx, N.Y.

Thomas Fitzgerald, a chiropractor who owned

the Medical Diagnostic Testing Company

(MDT), was arrested in March based on an

indictment charging him with embezzling

more than $100,000 from the Mason Tenders

District Council of Greater New York Welfare

Fund and with mail fraud in conjunction with

the scheme. MDT charged each plan $901 for

physical examinations, which were required

for all plan participants.

In addition to providing physicals, Fitzgerald

began referring participants to medical

specialists in private practice. To induce the

specialists to provide care, Fitzgerald told

them they would receive 100 percent of their

fees, rather than the percentage of reasonable

and customary charges normally paid. The

specialists were instructed to send their bills to

MDT. The bills were forwarded to the plan for

payment. MDT initially paid the bills, but

eventually stopped, even though the plan

continued to pay MDT for specialists’ services

and more than $100,000 was received and

used by Fitzgerald for personal expenses.

Subsequently, he was charged in a superseding

indictment with tax evasion for failing to

report more than $938,000 in income. He

allegedly owes more than $200,000 in income

taxes.

Further action is pending. This case was

investigated by PWBA, the FBI and the

Criminal Investigation Division of the IRS.

United States v. Susman and Sokolic

3/31/97

Philadelphia, Pa.

Gerald Susman and Stephen E. Sokolic, two

attorneys specializing in pension and tax law,

were charged with systematically creating false

legal documents to facilitate and conceal the

embezzlement of more than $560,000

from an Employee Stock Ownership Plan.

The plan was sponsored by a now defunct

Newark-based defense contracting firm

known as Micro-Products Engineering

Co. The defendents pleaded guilty as charged.

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Sentencing is pending.

The president and owner of the firm, William

Hebling, has been previously charged with

conspiracy, embezzlement, making false

documents, and mail and wire fraud, in

connection with the theft. To cover the theft,

Hebling converted the profit sharing plan to an

Employee Stock Ownership Plan at a time

when he had filed for bankruptcy and the stock

was worthless. This allowed him to substitute

company stock for misappropriated retirement

monies. He used false documents prepared by

Susman and Sokolic to create the illusion of a

company worth $4 million while it was in

bankruptcy.

This case was investigated by PWBA, the FBI

and the Criminal Investigation Division of the

IRS.

United States v. Manin

4/08/97

Philadelphia, Pa.

Dr. Lawrence Manin was charged and found

guilty of embezzling $25,766 from his medical

practice’s profit sharing plan. He elected to go

to trial and in July, a jury returned a guilty

verdict. This case was investigated by

PWBA. Government witnesses called to

testify included investigators from PWBA’s

Philadelphia Regional Office and staff from

PWBA’s Office of Regulations and

Interpretations and the Division of Technical

Assistance in Washington, D.C.

United States v. Lampert

5/06/97

Minneapolis, Minn.

John Lampert was charged with embezzling

$82,768 from his company’s 401(k) plan.

Approximately $63,000 of the stolen funds

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represented employee contributions that were

deducted, but never forwarded to the trust. He

was also charged with four counts of mail

fraud.

He pleaded guilty to the embezzlement charge,

and one count of mail fraud, which involved

his failure to forward monies withheld from

employee paychecks for court ordered child

support payments. Restitution was made and

he was sentenced in October to 1 year

imprisonment. The investigation in this case

was conducted by PWBA.

United States v. Daniels

5/14/97

Boston, Mass.

An indictment was returned that charged

Alfred Daniels, the owner of H.H. Aerospace,

with allegedly embezzling more than $240,000

from his company‘s plan, a defined benefit

plan, which covered 170 participants and had

assets of $1.2 million. He was also charged

with income tax evasion for failing to report

his personal use of the embezzled funds as

income. He pleaded guilty in November to

one count of embezzlement and one count of

tax fraud. This case was investigated by

PWBA and the Criminal Investigation

Division of the IRS.

United States v. Carey

6/10/97

Pacific Palisades, Calif.

Levi J. Carey, the owner of Computer Software

Analyst, Inc. was charged with embezzling at

least $450,000 from his company’s 401(k)

profit sharing plan by failing to forward

employee contributions. The plan had $1.4

million in assets and covered 305 employees
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of the U.S. Armed Forces. Carey pleaded

guilty as charged in July. At the plea hearing,

the prosecutor said that at the time of

sentencing, evidence would be presented to

show that Carey embezzled more than a

million dollars from the plan. Sentencing was

scheduled for March 1998.

Carey’s company provided technical and

engineering services to the U.S. Air Force,

U.S. Navy, U.S. Postal Service and NASA.

The case was investigated by PWBA with

assistance from the U.S. Postal Inspection

Service, NASA/IG, the Air Force Office of

Special Investigations and the Naval Criminal

Investigation Service.

New York v. Lake Construction et al.

6/12/97

New York, N.Y.

Eight individuals and companies were charged

in a criminal information with grand larceny in

the first degree and offering a false instrument

for filing in the first degree. All pleaded guilty

as charged. More than $3 million was stolen.

Lake Construction, one of the charged

companies, systematically failed to pay its

workers the prevailing wage rate and to make

contributions to employee Supplemental

Benefits and Pension Funds. The plan covers

47 participants and had assets of $769,130.

The defendants acknowledged that in covering

up the larceny, they filed a series of false

instruments certifying the company was in

compliance with labor law. The defendants

agreed to restitution of $3,829,862 and a fine

of $350,000. The plea agreement sets forth

procedures to be followed in making the

restitution and paying the fine, including the

appointment of an independent audit firm to

monitor the payments.

This case was investigated by PWBA, the

Manhattan District Attorney’s office, New

York City’s Division of Investigations and

Office of Labor Racketeering.

United States v. Carlow

7/17/97

Uniontown, Pa.

A 91-count indictment charged Frank Carlow

with pension and health plan fraud, and tax

and mail fraud. This has been described as the

largest tax fraud case ever brought in the

Western District of Pennsylvania. The

estimated loss to the plan funds is $2 million.

In the tax evasion counts, Carlow is charged

with a conspiracy to systematically underreport employment and coal excise taxes

totaling $10 million. Some of the money was

used to fund his personal lifestyle.

Carlow’s companies employed 400 miners,

and his scheme adversely impacted their

pensions and health benefits through the false

reporting of wages and hours worked.

Additionally, Carlow is charged with providing

false reports to the union to conceal his failure

to pay medical bills incurred by his employees

and payable by him.

Carlow pleaded guilty to charges of tax, mail,

pension and environmental fraud. He also

pleaded guilty to obstruction of justice for

telling a Federal District Court judge in a Mine

Workers Union suit to recover unpaid medical

claims that the amount involved was

$620,000, when it was approximately $1.5

million. Sentencing is pending.

This case resulted from an investigation

conducted by PWBA, the Labor Department’s

Office of the Inspector General, Division of

Labor Racketeering, the Criminal Investigation

Division of the IRS, and the FBI.
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United States v. Kelder

9/11/97

New Hampton, N.Y.

William Kelder, former controller for Lloyd’s

Shopping Centers, Inc. pleaded guilty to

participating in a conspiracy with other

company officers to falsify records pertaining

to Lloyd’s employees’ pension and 401(k)

savings plans. Kelder admitted that to conceal

the theft of approximately $2 million of plan

assets, he distributed to employees fictitious

401(k) plan statements reflecting that savings

and contributions were available and earning

interest, when the money had been used to pay

corporate debts. Some of the funds in the

fraud involved diverted employee

contributions. Sentencing is pending. This

case was investigated by PWBA.

United States v. Harmon

9/29/97

Camano Island, Wash.

Phillip Harmon, a Camano Island

businessman, pleaded guilty to conspiring to

defraud some 230 investors out of some $14

million and to defrauding hundreds of

employees, primarily ministers of various

churches and their families, by inducing them

to pay millions of dollars in what they thought

were premiums for health insurance coverage.

In fact no health insurance was purchased.

As part of the investment scheme, he sold

unregistered securities in the form of

promissory notes and marketed the notes to

friends and other acquaintances, promising

them a return better than the prevailing rate.

Quarterly statements were sent to customers

reflecting not only their investment amount but

the interest at the promised rate. However,

there were no investments. Harmon used the

investments to pay his overhead and salaries

for himself and other business associates. He

also used some of the money to pay off

investors who demanded payment.

Likewise, in the health program scam, he and

his associates induced employer groups of

various church organizations to pay millions of

dollars in health insurance premiums to two

trusts that he set up. In fact, no insurance was

purchased. Rather, the money went to benefit

Harmon and other co-conspirators and

affiliates. Some of the premium dollars were

also used to pay off investors who demanded

their money back.

The total amount collected by Harmon by

means of the schemes may be as high as $40

million. The investigation into this matter was

conducted by the FBI, the Criminal

Investigation Division of the IRS, PWBA, the

state of Washington’s Department of Financial

Institutions and the Washington State

Insurance Commissioner.

United States v. Riedy

10/15/97

Lebanon, Mo.

Pharmacy owner Stephanie Riedy pleaded

guilty to a one-count criminal information

charging her with mail fraud. She admitted

that between January 1994 and September

1996 she submitted false bills to ALTA Health

Strategies, Salt Lake City, an agent for the St.

Louis Graphic Arts Joint Health and Welfare

Fund, for prescription drugs which were never

dispensed, and fraudulently obtained $42,943

in plan money from the fund. Riedy was

sentenced to 6 months house arrest and fined

$10,000. This case was investigated by

PWBA.
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United States v. Judith Peterson,

Ph.D., et al.

10/29/97

Houston, Texas

Judith Peterson, a psychologist, and four other

co-defendant medical professionals, were

indicted on charges alleging that they devised

a scheme to bilk private insurers, including a

self-insured ERISA health plan, out of

payments for medical benefits. The

indictment alleges that they relied on false

diagnosis based on the use of mind-control

techniques in which suggestions were made to

patients that they had been subjected to abuse,

including satanic cult abuse. Allegedly, over

$800,000 is involved in the fraud.

Co-defendants are Richard E. Seward, M.D.,

Gloria Keraga, M.D., Sylvia Davis, M.S.W.,

and George Mueck, administrator at the Spring

Shadows hospital, where patients were treated.

Peterson was clinical director of the

Dissociative Disorders Treatment Program and

claimed expertise in treating multiple

personality disorders; Seward was board

certified in general adult and child psychiatry;

Keraga specialized in psychiatry; and Davis is

a licensed psychotherapist.

This case is being investigated by the FBI.

PWBA’s assistance was requested in view of

the alleged use of false records to enable the

defendants to obtain insurance coverage under

COBRA.

United States v. Hutner

11/06/97

Hartford, Conn.

Edward Hutner, an account administrator with

the Life Insurance Company of North

America, CIGNA Retirement and Investment

Services, pleaded guilty to a mail fraud

scheme through which he obtained over $1

million. He perpetrated the scheme by

creating fictitious pension plan participants

and submitting requests on their behalf for

distribution of pension benefits. He would

then approve the requests. Hutner also

established money market accounts for the

fictitious participants at brokerage houses.

Checks for more than $900,000 were mailed

to the brokerage houses. This case was

investigated by PWBA and the FBI.

United States v. Williams

12/03/97

Ketchikan, Alaska

Evelyn Williams was charged with falsifying

company records to make it appear that

rebate checks from vendors received by the

company were payments she was making on

amounts she and her husband owed the

company. Twenty-eight percent of the

company was owned by the companysponsored Employee Stock Ownership Plan.

She pleaded guilty as charged and admitted

mischaracterizing the purchase of gifts,

personal items and construction services in

company records. Sentencing is pending.

This case was investigated by PWBA, the

FBI and the Criminal Investigation Division

of the IRS.

United States v. Andrew and Angela

Fanelli

12/16/97

New Hope, Pa.

A four-count indictment charged Andrew

Fanelli, D.O. and Angela Fanelli with

conspiring to embezzle funds from Regional
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Gastroentrological Associates (RGA) Pension

and Profit Sharing Plan and money laundering.

Allegedly, their actions caused losses in excess

of $1 million. Andrew Fanelli was a partner in

the firm that provided RGA’s accounting

services. Ms. Fanelli was the firm’s business

administrator.

The plan covered seven participants and had

$804,000 in total assets in 1995. The

defendants withdrew plan assets and deposited

the funds into the accounts of RGA that they

used for themselves. They instructed banks

and brokerage firms to send statements to their

home addresses, denied financial information

to participants, and instructed the firm not to

furnish financial information to anyone

besides the defendants, unless the defendants

instructed them otherwise.

This case was investigated by PWBA, the

Labor Department’s Office of the Inspector

General, Division of Labor Racketeering, and

the Criminal Investigation Division of the IRS.

Civil Cases

The following is a sampling of the civil cases

investigated in 1997. Specific agency

initiatives that a case targets are identified,

where applicable, in parenthesis at the end of

the narrative.

Metzler v. Carlow

8/04/97

Pittsburgh, Pa.

The Department sued Michael Carlow, U.S.

Cement, SME Industries and other companies

controlled by Carlow alleging that the

defendants failed to make employer

contributions to the U.S. Cement Employees

Benefit Plan.

Under the plan’s rules, sponsoring

employers were required to contribute

50 cents to the plan for every hour worked

by participants up to 40 hours per week.

However, the employers failed to make

approximately $1.3 million in contributions

and made false statements regarding

contributions being deposited.

The defendants also improperly created a

new vesting schedule for the plan, causing

participants to lose vested benefits.

Carlow and his companies were ordered to

pay $2,692,574 in restitution. The

defendants were also permanently barred

from serving as fiduciaries of an ERISA plan

in the future.

Herman v. Lupo

9/23/97

New York, N.Y.

As part of a consent judgment with the

Department, James Lupo and four

individuals, former trustees of the Mason

Tenders District Council Annuity Fund, have

agreed to be barred for 5 years from

overseeing or exercising control over any

plan governed by ERISA.

The Mason Tenders District Council covers

some 7,000 workers throughout New

York City and Long Island. The Council

jointly administers seven funds, including

the annuity fund, which are funded through

employer contributions.

The judgment resolves a lawsuit filed in

September 1997 by the Department alleging

the trustees allowed the fund’s investment

manager, William Mason & Co., Inc. to
14

invest more than $27.8 million of plan money

in risky mortgage-backed securities that

resulted in substantial losses.

 Prior to the date of the consent judgment, the

fund settled for $5 million claims similar to

those asserted by the Department.

Reich v. American National Can

Company

6/26/97

Chicago, Ill.

Under a settlement with the Department,

American National Can Company agreed to

contribute $1.34 million to a new pension plan

created by the settlement. The company also

agreed to post a $1 million irrevocable letter of

credit to guarantee benefits of plan

participants. The company also agreed to set

up an escrow account with $60,000 to pay

benefits owed to participants who chose to

receive lump sum payments instead of monthly

annuity payments.

The Department and private litigants alleged

in lawsuits that the company and its pension

benefits committee failed to consider the

financial stability, credit-worthiness or ability

to pay claims before purchasing group annuity

contracts from Executive Life Insurance

Company.

Approximately $22 million in plan assets were

used to purchase annuity contracts that

provided retirement benefits to 747

participants and beneficiaries. When the plan

was terminated, the company received more

than $30 million in surplus assets.

The settlement with the Department

guarantees that current and future retirees, and

their beneficiaries, will continue to receive 100

percent of the benefits they were promised

under the terms of their pension plan.

(Annuity Project)

Herman v. Ashiotes

6/06/97

Carle Place, N.Y.

The Department obtained a temporary

restraining order freezing the assets of the

International Brotherhood of Trade Unions

Local 122 health trust. The restraining order

was requested because excessive amounts of

money were being diverted from the trust.

The trust was created by Ashiotes and three

individuals to provide health benefits to

members of Local 122, which purported to be

a union although it has never negotiated for

any employment terms other than health

benefits, nor filed reports required of a union

under federal labor law.

The Department’s lawsuit alleges the

defendants and John Hyde, who operated an

organization that provided administrative

services to the trust, diverted approximately 51

percent of plan assets to themselves under the

guise of paying association fees, union dues

and consulting fees. They also engaged in

self-dealing by diverting the bulk of trust

assets of approximately $737,798 to

themselves or to entities under their control.

The Department’s lawsuit asked the court to

require the defendants to restore to the trust

any losses and funds received as a result of

their actions; sought removal of the defendants

from their positions with any ERISA covered

plan, and the appointment of an independent

fiduciary to manage the Local 122 trust; and

sought to bar the defendants from serving in

positions of trust or receiving compensation,
15

other than benefit payments, from any

employee benefit plan. (MEWA Project)

Herman v. Windle

6/04/97

New York, N.Y.

A consent order obtained by the Department

removed the trustees of the George F. Kolsch,

Inc. pension and 401(k) plans from their

positions with the plans. The order also

required the trustees to distribute the plans’

assets to all participants except themselves.

Under the order, the trustees agreed to pay

benefits from their personal assets and to

waive their rights to benefits in order to pay

100 percent of both plans’ benefits to

participants.

The Department sued the company, and trustee

Douglas H. Windle, for allegedly failing to

remit $116,298 in employee contributions to

the 401(k) plan. Later, the suit was expanded

to include a charge that more than $400,000 in

assets of the defined benefit pension plan was

transferred to the company to pay expenses,

including taxes owed to the IRS.

The company repaid $98,000 of diverted funds

to the plan. Windle and another individual

will pay more than $130,000 from personal

assets. (Employee Contributions Project)

Reich v. Devine

5/07/97

New York, N.Y.

A consent judgment obtained by the

Department will provide three employee

benefit funds of the New York District Council

of Carpenters with more than $50 million to

reimburse them for improper transfers to the

union’s welfare fund. Collectively, the funds

had in excess of $1 billion in assets at the end

of September 1993.

The Department’s lawsuit alleges fund trustees

transferred more than $37.6 million from the

pension, annuity and vacation funds to the

welfare fund; paid leases and insurance on

luxury vehicles; didn’t enter into leases and

collect rent owed to the pension and

apprenticeship funds by the District Council,

union locals and other funds; and compensated

two employees without monitoring services

they provided to the funds and failed to obtain

reimbursements for services performed for the

Council at plan expense.

As part of the judgment, fund trustees must

institute procedures to assure that expenses are

properly paid by the funds for vehicles,

telephones and other expenses. They must

also ensure that records are maintained and

that expenses are properly apportioned among

the funds. Finally, the judgment stipulates that

the pension fund shall execute leases with its

district councils and locals for rental property.

Metzler v. Bennett

4/08/97

Alexandria, Va.

The Department reached an agreement with

Dynamic Systems, Inc. and officials of its

401(k) plan to recover $525,000 for plan

participants. The recovered funds will be

allocated among all plan participants other

than the defendants who included plan official

David Bennett and others.

The Department alleged that Bennett and the

other plan officials caused the plan to suffer a

loss by improperly investing in guaranteed

investment contracts (GICs) issued by the now

defunct InterAmerican Insurance Company of
16

Illinois. The defendants allegedly failed to

evaluate the financial stability, creditworthiness and claims-paying ability of

InterAmerican before investing plan assets

with the company. The lawsuit also alleged

that the defendants did not monitor the

investments to determine whether the plan

should continue to hold them. (Employee

Contributions Project)

Reich v. Haworth Home Health Care

Agency, Inc.

3/10/97

Vicksburg, Miss.

The Department reached a settlement with

Haworth Home Health Care Agency, Inc. and

its chief operating officer, in which more than

$2.1 million will be paid to the agency’s

money purchase plan.

The complaint alleged the defendants violated

ERISA when they failed to make promised

contributions to the plan beginning in 1984.

In failing to collect required contributions, the

defendants effectively granted the company an

extension of credit.

The plan was established in 1981, and solely

funded by annual employer contributions

based upon employees’ salaries. Under plan

rules, contributions ranged from 14 percent of

employees’ gross annual salaries to 9 percent

in 1987. The Department estimated the loss of

contributions to the plan at $1.6 million, plus

an estimated loss of interest through 1994 of

$498,828. There were 191 employees

participating in the plan in December 1994,

and its assets were $1.8 million.

Metzler v. Bennett

2/06/97

Syracuse, N.Y.

The Department filed a lawsuit against

Bennett Funding Group, Inc. and the trustees

of its pension and profit sharing plans for

making more than $3 million in improper plan

loans. Collectively, the plans had approximately

$3.6 million in assets at the end of 1995.

The lawsuit alleges that Edmund Bennett and

his son, Patrick, violated their duties as

trustees and administrators of the pension and

profit sharing plans for employees of Bennett

Funding Group.

The Bennetts allegedly used plan money to

make loans to Bennett Funding Group and two

other companies owned by Patrick Bennett.

The trustees also made unsecured loans

totaling $250,000 to Hemlock Associates, a

firm unrelated to them. Additionally, the

trustees allegedly transferred a $539,087

investment certificate owned by the pension

plan to Bennett Funding group. The firm and

the trustees also were charged with failing to

collect the money owed to the plans.

Herman v. Lee

10/14/97

Orange County, Calif.

The Department sued the partners in the

medical practice of Lee, Selin and Grimes for

making $995,000 in improper investments

from pension plans sponsored by the practice.

The physicians served as trustees of the profit

sharing plan and its predecessor plans, which

covered as many as 15 employees and had

approximately $2.3 million in assets at the end

of 1995.
The Department’s lawsuit alleged the trustees

made improper loans to defendant Lee and

another individual. The defendants also

allegedly concentrated $570,000 in assets of

the money purchase plan in a single real estate

loan. The investment was later assumed by

the profit sharing plan. The profit sharing plan

has allegedly lost $400,000 including interest

on the investment. Finally, defendant Lee

allegedly authorized the imprudent investment

of $200,000 in a limited partnership joint

venture. The other defendants were alleged to

have knowingly participated in the improper

real estate investment made by Lee.

The Department’s lawsuit seeks a court order

requiring the trustees and the estate of Lee,

who is now deceased, to restore all losses

suffered by the plan, and to remove Selin and

Grimes from their positions with the plan.

Reich v. Archina

10/14/97

Troy, N.Y.

The Department obtained consent judgments

that will provide three employee benefit plans

of the Laborers’ International Union with

$491,123 in restitution. Plan officials also

agreed to implement procedures on payment of

plan expenses in order to prevent future abuses

of plan assets.

The judgments resolve a 1996 lawsuit alleging

that trustees of Construction and Laborers’

Workers Union Local 452 C, sponsors of

pension, health and training plans under

collective bargaining agreements with

participating employers, allowed more than

$490,000 to be misappropriated for personal

and unauthorized expenses. The funds

collectively had assets of $17.2 million and

covered as many as 400 participants in 1992.

As a result of the Department’s lawsuit, and

criminal actions brought by the Justice

Department, the plans will receive full

restitution. (Multiemployer Project)

Herman v. Burnett

11/17/97

Englewood, Colo.

Pursuant to a temporary restraining order

obtained by the Department, a federal

district court in Denver froze the assets of

the president and owner of PROSERA CMI,

Inc. and appointed an independent fiduciary

to oversee the company’s welfare benefit

plan.

PROSERA purports to be an employee

leasing firm even though client employers

retained complete control over their

employees. The leasing company provided

for a fee a package of benefits which

included payroll services, health benefits,

and workers compensation or occupational

injury insurance coverage. The company’s

services were marketed to Denver

employers. However, premiums paid by

employers and workers for health and

workers compensation benefits were

commingled with the assets of the company

and diverted to the use of Burnett.

The lawsuit seeks a court order requiring

Burnett and the defendants to reimburse the

plan for any losses or illegal profits received

as a result of their misconduct in managing

the plan, and to post a bond to insure the

plan against past and future losses. The

17
Department also asked the court to remove

Burnett and PROSERA from their positions

with the plan, to permanently bar them from

serving any ERISA-covered plan in the future,

and to prohibit Burnett from receiving

compensation, other than for benefits

payments owed to him. (MEWA Project)

Herman v. Bertin Steel Processing,

Inc.

12/02/97

Wickliffe, Ohio

The Department sued Bertin Steel Processing,

Inc. corporate officers and providers of

services to the company’s welfare plan for

misusing more than $1.1 million of the plan’s

assets to make improper loans and transfers to

themselves and others.

The plan provides health, death, long-term

disability, prescription drug and holiday/sick

benefits to employees of Bertin Steel

Processing. At the end of 1995, the plan

covered 120 participants and had assets of

approximately $1.4 million.

The lawsuit alleges company officers and plan

trustees Bernard and Samuel D’Ambrosi

loaned $251,705 to the plan’s service provider

under a promissory note collateralized by

property, failed to collect money owed on the

promissory note, and failed to ensure

compliance with the note’s terms.

The lawsuit also alleges that the D’Ambrosis

transferred $320,907 of plan money to Bertin

Steel to pay employee bonuses in 1994,

including $134,627 in bonuses to themselves.

They also allegedly concentrated 40 percent of

plan assets in loans, transfers and guarantees

with Richmond Industries; caused the plan to

guarantee two loans totaling $773,319 made to

Richmond Industries through the Small

Business Administration; and made plan loans

of $68,000 to Richmond Industries on which

the company has never made a payment.

Additionally, the defendants allegedly failed to

pay death benefits to the beneficiaries of a

deceased employee in accordance with plan

terms. As administrator of the plan, Bertin

Steel is alleged to have failed to take steps to

correct the fiduciary breaches of the other

defendants.

The Department’s lawsuit seeks restoration of

all plan losses by the defendants, and seeks

replacement of the trustees with an

independent trustee.

Herman v. Maggio

12/17/97

Towson, Md.

The Department sued Maggio-Onorato and

Associates, Inc. and its owners, Andrew

Maggio and Richard Onorato, as benefit plan

administrators, for improperly receiving

commissions on policies sold to the plans.

The company markets death and severance pay

benefits to home health care agencies. Under

agreements signed by the home health

agencies, MOA is plan administrator of all the

plans, which are funded with whole life

insurance policies selected by MOA.

The Department’s lawsuit alleges that the

company and its owners received illegal

commissions in their role as insurance agents

for the plans and also failed to disclose those

commissions in annual financial reports

required by the government.

The lawsuit seeks a court order removing the

defendants from their positions with the plans

18
8 9

 Both civil and criminal cases and recoveries or indictments may continue from one calendar to the next (i.e., a case opened

 in 1997 may not be settled until 1998). The numbers in the chart above represent totals for the 1997 calendar year.

19

Civil and Criminal Cases/Recoveries

and the appointment of an independent

fiduciary to manage the plans. It also asks the

court to require that the defendants return all

illegal commissions received by them on

account of the plans. Finally, the lawsuit asks

that the defendants be permanently barred

from serving in positions of trust to any plan

governed by ERISA.
Calendar Year 1997

In 1997 public education efforts continued to

provide participants with information on their

rights and protections under ERISA with a

goal of increasing public awareness of basic

pension and retirement planning issues,

including the importance of personal savings,

ways for employees to protect their benefits

and general information on pension investing.

PWBA’s public outreach and customer service

activities included planning and coordinating

major press events that involved the

preparation of press releases, statements,

talking points, fact sheets and pamphlets in

addition to the logistical planning of making

advance press calls and handling follow-up

inquiries. In 1997, the agency publicized:

A $22 million recovery for more than

40,000 workers due to the 401(k)

plan fraud crackdown.

HIPAA regulations and addendum to

the HIPAA booklet, Questions and

Answers: Recent Changes in Health

Care Law.

A pension abuse initiative with the

Department of Justice.

Information on small business

retirement plan options in conjunction

with the Office of the Vice President

and the Small Business

Administration.

A Chicago event in which the

Secretary of Labor unveiled QDROs:

The Division of Pensions through

Qualified Domestic Relations Orders

to help clarify how to divide pension

assets mandated by domestic relations

court orders. The QDRO publication

Participant Assistance/Public Education

provided long-awaited guidance on

the rules that apply when couples

facing divorce wish to divide pension

benefits.

Three events held in Nashville during

Labor Day 1997 to promote retirement

savings in which Labor Secretary

Alexis Herman reinforced the

message of saving for retirement.

In the area of public disclosure, the agency

converted to a new filing system using

microfiche. The agency provided 17,252

documents in response to 4,890 individual

requests, and closed 204 of the 227 Freedom

of Information Act requests received; three

requests were appealed.

20












Retirement Savings Education

In 1997, PWBA continued its high-profile

Retirement Savings Education campaign, with

the goal of increasing public awareness of

basic savings and retirement planning issues.

The campaign has grown from 65 publicprivate partnerships when it began in 1995 to

more than 250.

Through its partners, which formed the

American Savings Education Council (ASEC),

PWBA has continued to leverage support and

resources to expand the national effort for

retirement security. The amount of education

and public interest in retirement savings has

grown tremendously. The agency, acting as a

catalyst, has managed to build and maintain

momentum for this outreach campaign that is

having a positive impact on the quality of the

futures of American workers.

The campaign, which targets the general

public, has also taken specific steps to reach

specific audiences including women, minority

populations and small businesses.

21

Women and minorities

were identified because

of their low participation

rates in pension plans

and because traditionally

they have earned lower

wages than white males.

Small businesses, which

employ 40 percent of the

private-sector workforce,

often do not offer any

type of retirement plan.

Of the 340 million

workers in businesses

with 100 or fewer employees, 32 million do

not receive any type of employer-sponsored

retirement benefit.

In June as part of Small Business Week

activities, the Vice President, Secretary of

Labor Alexis Herman and Small Business

Administrator Aida Alvarez encouraged small

companies to start pension plans for their

workers by unveiling a five-step plan. These

steps included encouraging small businesses

to: learn more about retirement plan options

by using PWBA’s toll-free publication

hotline, in which consumers can obtain free

more than 25 brochures on retirement savings

and health and pension benefit issues (the

hotline averages 1,557 calls weekly); establish

a plan by considering one of the simpler

retirement savings plans, such as SIMPLE or

SEP, that the agency publicized; and educate

their employee about retirement planning and

their investment options.

Educating small business owners and their

workers about the importance of retirement

savings is helping to increase the overall

retirement savings rate in the country. The

CY 1997 Inquiries Summary

Telephone 135,286

Written 18,814

Benefit Recoveries

$30.9 Million

Fiscal Year 1997

Total: 155,035

NOTE: Data is annualized - based upon data available.

Visitors 873

Electronic Mail 62
22

campaign also encourages small businesses to

explore all of their options for providing a

retirement plan and, in particular, the

simplified pension plans designed to meet

their needs.

For minorities the statistics are also bleak. For

example, 32 percent of Hispanic Americans

aged 55 and above receive pensions, compared

to 40 percent of African-Americans and 52

percent of white Americans. Throughout the

year hundreds of thousands of copies of

retirement savings material targeting these

groups were printed and distributed by mail

and at public events. The agency also

recognized there is a significant number of

Hispanics that do not speak English. To reach

these individuals, two of the most popular

retirement savings brochures were translated

into Spanish: Top Ten Ways to Beat the Clock

and Prepare for Retirement and Women and

Pensions: What Women Need to Know and

Do.

The agency has also supported passage of the

new Savings Are Vital to Everyone’s

Retirement Act of 1997 (also known as

SAVER), which was signed into law by

President Clinton in November. In

complementing the Retirement Savings

Education Campaign, this law echoes the

agency’s efforts to increase retirement savings

education. It identifies PWBA as the lead

agency and the coordinator of three national

summits on retirement savings. In the latter

part of the year, PWBA began planning the

first such event while maintaining several

other campaign activities.

The agency continued to distribute public

service announcements (PSAs). A series of

seven PSAs were distributed nationally and

placed in more than 8,000 magazines and

newspapers. The agency distributed two

million copies of its retirement saving

brochures and booklets; made available the

Top Ten Ways brochure through the Consumer

Information Center’s catalog via mail order;

and engaged the Secretary and Assistant

Secretary to speak nationally to a variety of

groups to keep the retirement savings message

in the forefront.
In 1997, PWBA granted a class exemption for

the conversion of collective investment funds

(CIFs) into mutual funds. As a result,

employee benefit plans can purchase shares of

a registered investment company in exchange

for plan assets transferred in-kind from a bankmaintained CIF in situations where the bank

serves both as a fiduciary to the plan and an

investment adviser for the registered

investment company.

The agency also granted a class exemption that

permits the receipt of services at reduced or no

cost by an individual for whose benefit an IRA

or Keogh Plan is established or maintained by

a broker-dealer.

Additionally, the agency proposed a class

exemption that would permit certain foreign

exchange transactions between banks or

broker-dealers and plans according to standing

instructions.

The agency also processed more than 40 goodfaith waivers imposed under Sec. 502(l) of

ERISA. This section imposes a 20 percent

penalty on any person who has been found to

have breached his fiduciary responsibilities.

During the past year, PWBA received 46

applications submitted pursuant to the Class

Exemption to Permit Certain Authorized

Transations between Plans and Parties-inInterest (EXPRO), a 1996 class exemption that

permits certain prospective routine

transactions where such transactions are

specifically authorized by the agency and are

substantially similar to two exemptions

previously granted by the agency. During this

period, the agency granted 26 submissions,

rejected 15, and four withdrew.

A significant individual exemption was

granted to Morgan Stanley and Company

Exemptions

(MSC). This exemption permits the British

affiliate of MSC to engage in principal

transactions on behalf of plans in the same

manner permitted for U. S. registered broker

dealers under Section II of Prohibited

Transaction Exemption (PTE) 75-1.

Additionally, the exemption permits the

lending of securities that are plan assets to the

British affiliate in the same manner as

permitted for U.S. registered broker-dealers

(under PTE 81-6) and the extension of credit

to plans to permit the settlement of securities

transactions (provided the subject transactions

satisfy the conditions found in PTE 75-1).

The agency also additionally granted an

individual exemption to the Chase Manhattan

Bank (Chase). This exemption permits: 1) the

proposed granting to Chase, the representative

of lenders participating in a credit facility, of

certain security interests in limited partnership

interests owned by certain employee benefit

plans with respect to which some of the

lenders are parties-in-interest; and, 2) the

proposed agreements by the plans to honor

capital calls made by Chase in lieu of the

partnership’s general partner.

The agency also granted an exemption that

resulted in the amendment of more than

40 previously granted individual exemptions

involving the origination and operation of

certain asset pool investment trusts and the

acquisition, holding and disposition of certain

asset-backed pass-through certificates

representing undivided interests in those

investment trusts.

In addition, the agency granted a significant

exemption to the UNUM Life Insurance

Company of America (UNUM). This

exemption permits a wide variety of

transactions resulting from the sharing of

equity investments between UNUM-sponsored

23
plan accounts and the general accounts of

UNUM and its affiliates.

In 1997, PWBA received 203 exemption

applications, granted 129, denied or withdrew

95 and had 166 pending at year’s end.

Throughout the year, a number of employers

sponsoring plans that invested in guaranteed

insurance contracts (GICs) requested

permission to engage in various transactions

with these plans in circumstances where the

insurer was insolvent. As a result, the agency

granted two exemption applications and five

EXPRO submissions involving requests from

employers to loan money to plans or either

guarantee or buy GICs from plans to prevent

losses or delays in benefits. The agency also

granted three exemptions for asset-backed

securities and one exemption for the sale of

collateralized mortgage obligations. These

transactions included:

Exemptions for GICs

97-01 January 14

Univar Corporation Guarantee and Loan

Unisaver to Plan

Tax Savings

Investment Plan

97-14 February 18

Givens 401(k) Savings Sale by Plan to

and Retirement Plan Sponsor

EXPRO grants for GICs

97-05E January 23

Kendall Company Sale by Plan to

Sponsor

24

97-19E August 18

Progress Software Sale by Plan to

Corp. and Sponsor

the Progress Software

401(k) Plan

97-27E October 29

Bank One Wisconsin Loan to Plan by

Trust Company, NA Sponsor

97-29E November 24

Malrite 401(k) Savings Loan to Plan by

and Retirement Plan Sponsor

97-30E December 12

Lord Corporation Sale by Plan to

 Sponsor

Exemptions for asset-backed

securities

97-05 January 14

SouthTrust Securities,

Inc.

97-28 May 23

Norwest Investment

Services, Inc.

97-34 July 21

Amendment to:

90-30

Bear, Stearns, &

Company, Inc.

90-32

Prudential Securities

Incorporated
25

Exemption for the sale of CMOs

97-07 January 31

Pikeville National

Bank and Trust

Company; Trust

Company of Kentucky;

and The First American Bank

Other significant exemptions

97-12 February 18

Wells Fargo Bank, N.A. Permits the past and

continuing provision by Wells Fargo of asset

allocation services to an independent fiduciary

or a directing participant of an ERISA section

404(c) plan potentially resulting in plan

investment in Wells Fargo’s affiliated and

third-party funds.

97-22 April 17

General Electric Pension Trust (the GE Trust).

Permits the sale by the GE Trust of its stock in

AmeriData Technologies, Inc. (AmeriData) to

the General Electric Capital Corporation

(GECC) and GECC’s indirect, wholly-owned

subsidiary, GAC Acquisition I Corporation

(GAC), both of which are affiliated with the

General Electric Company, the GE Trust’s

sponsor, in connection with the merger of

GECC and AmeriData.

97-46 September 5

John Hancock Mutual Life Insurance

Company (JH). Permits 1) the acquisition of

certain oil and gas rights subject to certain

leases (Leases) from a limited partner of JH by

a separate account having plan assets and

maintained by JH; and, 2) the continuation of

the Leases following the acquisition by the

account.

97-50 September 16

McLane Company, Inc.Profit Sharing Plan

(McLane) and Trust (the Plan). Permits the

sale by the Plan of real property to McLane,

the Plan’s sponsor.

97-57 October 29

NatWest Securities Corporations (NatWest).

Permits principal transactions and securities

lending between an employee benefit plan and

a broker-dealer affiliated with NatWest and

subject to British law.

97-59 October 30

Aldrich Eastman & Waltch Capital

Management, L.P. (AEW). Permits the

payment of certain initial investment and

disposition fees to AEW by employee benefit

plans (the Plans) for which AEW provides real

estate investment management services

according to an investment management

agreement entered into between the Plans

(either individually or collectively) and AEW.

97-60 November 4

TCW Group, Inc., Trust Company of the West,

TCW Funds Management, Inc., TCW Galileo

Funds (TCW). Permits the provision of asset

allocation, investment advisory, and related

services by TCW to the independent fiduciary

of a plan that may result in the plan’s

investment in trusts sponsored and managed

by TCW.

97-63 December 19

State Street Bank and Trust Company (State

Street). Permits the lending of securities to

any U.S. registered broker-dealers affiliated

with State Street by employee benefit plans,

including commingled investment funds

holding plan assets, for which State Street acts

as a directed trustee, custodian or securities

lending agent.
26

Significant EXPRO grants

97-06E February 24

Banc One Corporation (Banc One). Permits

Banc One to offer supplemental interest

sensitive whole life insurance (the Policy) to

its employees and reinsure all or part of the

risk under the Policy through an affiliated

reinsurance company in exchange for a

portion of the premiums received from the

participating employees.

97-13E April 4

KeyCorp and the Key Trust Company of

Ohio (KeyCorp), and the KeyCorp 401(k)

Savings Plan (the Plan). Permits the sale of

two mortgage loans acquired by the Plan

through the Plan’s merging with other plans

to KeyCorp, the Plan’s sponsor.

97-21E September 10

Credit Lyonnais. Permits transactions

involving the investment by employee

benefit plans in pass-through certificates or

debt instruments representing interests in

certain categories of investment trusts, the

trustee or servicer of which may also be a

trustee or servicer of the plan.

Significant proposals

MS Commodity Investments Portfolio II, L.P.

(MS). This proposed exemption would

permit plans that receive financial services

from MS or its affiliates to acquire or redeem

units in a partnership with respect to which

MS is the general partner.

Metropolitan Life Insurance Company

(MetLife). This proposed exemption would

permit: 1) the prospective purchase or

retention by an employee benefit plan (the

Plan) and, 2) the sale or continuation by

MetLife or an affiliate of a synthetic

guaranteed investment contract (GIC) entered

into between the Plan and MetLife under

which MetLife guarantees certain amounts and

thereby becomes a creditor to the Plan.

PNC Capital Markets, Inc. (PNC). This

proposed exemption would provide relief for

the operation of certain asset pool investment

trusts and the acquisition and holding by plans

of certain pass-through certificates

representing undivided interests in those

trusts.

National Rural Utilities Cooperative Finance

Corporation (CFC). This proposed

exemption would apply to the following

transactions relating to the refinancing by CFC

of various loans made to the Kansas Electric

Power Cooperative, Inc. (KEPCO) and certain

notes issued by KEPCO in connection with

such loans that are assigned to trusts for which

CFC acts as a servicer: 1) the operation of the

asset pool investment trust containing the

notes; and 2) the acquisition and holding of

the certificates representing undivided

interests in the trust.
During 1997 PWBA published:

A proposed and a final regulation

harmonizing the rules under Title I of

ERISA concerning when participant

contributions will be considered assets

of a plan with amendments of the

Internal Revenue Code enacted by the

Small Business Job Protection Act of

1996.

A notice of proposed rulemaking

relating to the provision of guidance

concerning amendments of Title I of

ERISA effected by the Small Business

Job Protection Act of 1996 that limit

the liability of insurers with regard to

certain types of contracts issued to or

for the benefit of employee benefit

plans.

An interim final rule amending the

agency’s summary plan description

and related regulations to implement

various amendments of Title I of

ERISA affected by HIPAA.

A proposed and a final rule relating to

the adjustment of civil monetary

penalties under Title I of ERISA

pursuant to the requirements of the

Debt Collection Improvement Act of

1996.

A request for public comments on the

burdens, costs and benefits of

accounting for post-retirement welfare

benefits in accordance with Statement

of Position 92-6 (SOP 92-6) of the

American Institute of Certified Public

Accountants (AICPA). Under SOP 92-

6, the AICPA modified generally

accepted accounting principles to

require health and other welfare plans

to calculate and disclose as part of

Regulatory Activities

their financial statements the present

value of their post-retirement benefit

obligations.

A booklet providing guidance to the

public regarding the application of the

qualified domestic relations order

provisions of Title I of ERISA and the

Internal Revenue Code.

A Request for Information soliciting

input from the public regarding the

need for amending existing

regulations under Title I of ERISA that

set forth minimum requirements for

employee benefit plan claim

procedures.

An advance notice of proposed

rulemaking concerning the

development of guidance with respect

to the ERISA Title I provisions that set

forth the notice requirements for

continuation of coverage by group

health plans.

A proposal, in conjunction with the

Internal Revenue Service and the

Pension Benefit Guaranty

Corporation, to streamline and

simplify the annual return/report forms

( the Form 5500 Series) filed for

employee pension, welfare and fringe

benefit plans under ERISA and the

Internal Revenue Code. The agency’s

goal in this initiative was to eliminate

reporting requirements for information

that is not needed to discharge its

statutory responsibilities, while

ensuring that participants and

beneficiaries have access to the

information they need to protect their

rights and benefits under ERISA.

27


















In 1997, the legislative activity continued to

focus on passage of legislation to enhance

pension security by advancing the

Administration’s proposals not enacted as part

of the Small Business Job Protection Act

(SBJPA) of 1996. These proposals would

simplify pension rules, improve portability,

expand retirement savings opportunities and

enhance pension security by strengthening

participant protections, penalties for violations

of the law and auditing of ERISA plans. The

agency continued to expend substantial

resources to provide analytical support for the

agency’s role in the interdepartmental task

force to develop the regulatory provisions of

HIPAA.

Several significant portions of the President’s

Retirement Savings and Security Act of 1996

were enacted in 1997 as part of the Taxpayer

Relief Act of 1997 (P.L. 105-34), including the

elimination of the requirement that Summary

Plan Descriptions and Summary Material

Modifications automatically be filed with the

Secretary of Labor. The agency assisted in the

development of this legislation and worked for

its enactment.

The agency’s Retirement Savings Education

Campaign received legislative support with the

enactment of the Savings Are Vital to

Everyone’s Retirement Act, (also known as

SAVER). The agency provided assistance to

Congress in the development of this

legislation, which also directed the President

to convene a National Summit on Retirement

Income Savings.

PWBA’s research activity focused on

American workers and families who are not

participating in employment-sponsored health

and pension plans. A special module of the

Survey on Income and Program Participation

Policy and Research

28

measuring pension participation and retirement

income adequacy among America’s workers

and retirees is being designed and is scheduled

to be fielded in 1998. A feasibility study of

methods for modeling the retirement security of

families will be initiated. The program will

also initiate studies assessing the performance

of participant-directed retirement savings

accounts and evaluating the experience of

group purchasing arrangements for employee

heath benefits. PWBA will publish a summary

volume of studies to mark the completion of its

long-term contract with the RAND

Corporation.

The agency’s Private Pension Plan Bulletin

covering Form 5500 annual reports for the plan

year 1993 was published. Statistical highlights

showed that the rapid growth in 401(k)-type

plans occurring over the past decade continued

in 1993, with a 10 percent increase from

140,000 plans in 1992 to 154,500 plans in

1993. In contrast, the number of defined

benefit plans decreased 6 percent in 1993 to

84,000, and the number of non-401(k) defined

contribution plans decreased 3 percent to

464,000.

Under its small research contracts program nine

new contracts were awarded in 1997.

The Panel on Retirement Income Modeling of

the Committee on National Statistics of the

National Academy of Sciences, supported by

PWBA and several other federal agencies,

published a volume titled Assessing Policies

for Retirement Income: Needs for Data,

Research, and Models.
Key Testimony

February

Assistant Secretary Olena Berg

appeared before the Senate Labor and

Human Resources Committee to testify

on the Department’s implementation of

HIPAA.

April

Assistant Secretary Berg appeared

before the House Appropriations

Subcommittee on Labor, Health and

Human Services to testify on budgetary

issues.

June

PWBA’s activiites were discussed in an

oversight hearing held by the House

Government Reform and Oversight

Committee’s Human Resources

Subcommittee on the Labor

Department’s mission and performance.

September

Deputy Assistant Secretary Meredith Miller

appeared before the Health Subcommittee

of the House Ways and Means Committee

and testified on the Department’s

implementation of HIPAA.

October

Assistant Secretary Berg appeared before

the Senate Labor and Human Resources

Committee and testified on issues

pertaining to S. 729, legislation entitled the

Expansion of Portability and Health

Insurance Coverage Act (known as EPHIC),

and other voluntary efforts to increase

health insurance coverage for working

adults and dependents.

29
During 1997, PWBA continued its

multifaceted program to improve enforcement

of ERISA’s reporting and disclosure

requirements and to encourage timely

compliance with the law. The agency

continued to emphasize proactive voluntary

compliance with the law, to coordinate efforts

with the accounting profession, and to offer

educational outreach seminars. It continued to

review ways to assess the quality of employee

benefit plan audits and to implement

traditional enforcement initiatives involving

civil penalties.

Reporting Compliance Program

The reporting compliance program is divided

among three groups: 1) deficient filers, 2) late

filers and 3) nonfilers. Penalties are imposed

on plan administrators for their failure to

submit complete and accurate Form 5500

Series annual reports with the Department. In

1997, approximately $8 million in civil

penalties was assessed against plan

administrators under the agency’s reporting

compliance program for filing unsatisfactory

Form 5500 Series annual reports.

Approximately $25 million was assessed for

late filings and nonfilings.

The agency’s Delinquent Filer Voluntary

Compliance (DFVC) Program continued to

encourage plan administrators to file

previously unfiled Form 5500 Series annual

reports and to resolve late filer penalties. In

addition, plan administrators of “top hat” plans

and apprenticeship and training plans who

missed their filing deadlines were permitted to

submit statements and elect an alternative

method of compliance in lieu of annual

reports.

DFVC simplifies the filing process and

reduces the financial hardship for voluntary

Accounting and Auditing

compliance for small business through smaller

fines. In 1997, nearly 2,900 plans chose to

take advantage of the DFVC program, which

resulted in the collection of more than $9

million in civil penalties.

Coordination with the Accounting

Profession

The agency continued its work with the

American Institute of Certified Public

Accountants (AICPA) and worked with this

organization to revise the 1997 AICPA guide

for auditing employee benefit plans. The

updated guide published in May 1997

incorporated new audit and accounting

requirements issued by the Financial

Accounting Standards Board (FASB). The

AICPA issued the guide to encourage

compliance with ERISA’s audit, reporting and

disclosure provisions.

Educational Outreach

Under the auspices of the International

Foundation of Employee Benefit Plans, PWBA

continued its series of educational outreach

workshops, presenting both the Form 5500

filing requirements and an overview of the

Department’s enforcement program. Through

December 1997, PWBA conducted 13 such

workshops in Atlanta, Boston, Chicago,

Dallas, Denver and San Francisco. An

additional four workshops are planned for

1998.

Referral of Substandard Audit Work

Through December 1997, PWBA referred 285

cases of potential deficient accounting and

auditing work to the American Institute of

Certified Public Accountants’ Professional

Ethics Division. Eighty-four resulted in either

a referral to the AICPA’s trial board or a

settlement agreement. One hundred thirty-two

30
Thrift Savings Plan Audits

PWBA conducted approximately 25 fiduciary

compliance audits of the Thrift Savings Plan

(TSP) as required by the Federal Employees’

Retirement System Act. Audit procedures

were designed to strengthen the security of the

$61 billion held in 2.3 million TSP accounts of

federal workers and to enhance opportunities

for greater net earnings by recommending

improvements in the TSP system.

cases resulted in remedial corrective action

letters. No violations were found in 13 cases,

while 24 cases were closed for other reasons.

Seventy-two cases have been referred to state

boards of accountancy in instances where the

AICPA lacked jurisdiction over the accountant

or the accountant was not properly licensed.

Performance of On-site Workpaper

Reviews

The agency continued the quality control

program for improving the audit work

performed by independent qualified public

accountants. OCA performed 59 on-site

reviews and analyses of audit workpapers that

support the accountant’s report.

The Department’s regulations permit an

independent qualified public accountant to

exclude from his/her examination and report

some or all of a plan’s assets prepared and

certified as complete and accurate by a bank,

or similar institution, or an insurance carrier

regulated and supervised and subject to

periodic examination by a state or federal

agency (limited-scope audit exception). In

1997, the agency initiated an informal study to

assess the validity and reliability of unaudited

assets carrying values certified to by such

financial institutions. In order to make its

assessment, the agency focused its efforts on

certain hard-to-value assets.

Plan Audit Reviews - 1997

Number of reporting

 compliance cases 2,190

Reviews of auditor’s work

 papers 59

Plan Audit Reviews

Cumulative through 12/31/97

Total audits referred 357

State licensing boards 72

AICPA 285

Resolutions - AICPA 253

Referred to AICPA trial board

 or settlement 84

Letters for corrective action 132

No deficiencies 13

Closed for other reasons 24

31
Health Care Task Force

Following is a summary of the most

significant regulatory issues developed by the

Health Care Task Force during 1997:

Interim Final Rulemakings

PWBA issued nine interim final

regulations implementing provisions

under HIPAA. HIPAA’s provisions

set forth federal requirements relating

to portability, access and renewability

of group health plans and group

health insurance coverage. The

provisions also include several other

protections, including special

enrollment rights for individuals that

relate to employment-based health

coverage. HIPAA’s provisions are

included in Part 7 of Subtitle B of

Title I of ERISA, and parallel

statutory provisions are set forth in the

Public Health Service Act and the

Internal Revenue Code.

PWBA issued an interim final rule

providing guidance under the Mental

Health Parity Act of 1996 (MHPA).

This interim rule provides guidance

on MHPA’s provisions, including

provisions concerning parity in the

application of dollar limits on certain

mental health benefits with dollar

limits on medical and surgical

benefits. MHPA provisions are

included in Part 7 of Subtitle B of

Title I of ERISA and parallel statutory

provisions are set forth in the Public

Health Service Act and the Internal

Revenue Code.

PWBA issued an interim final notice

clarifying the application of the

nondiscrimination provisions under

HIPAA to individuals who, prior to

the effective date of HIPAA, were

denied group health plan coverage

based on a health-status-related factor.

This notice clarifies that an employee

(and any dependent) who was

previously denied coverage must be

given an opportunity to enroll in the

plan and cannot be treated as a late

enrollee for purposes of applying any

preexisting condition exclusion

period.

PWBA issued an interim final notice

clarifying the application of the

portability provisions under HIPAA to

flexible spending arrangements

(FSAs). This notice clarifies that it is

appropriate to treat benefits under a

health FSA as excepted benefits if the

health FSA is offered in conjunction

with another group health plan and if

the employer contributions do not

exceed a specified amount.

Requests for Information

PWBA issued a Request for

Information in the Federal Register

on how best to implement the

provisions of MHPA and the

Newborns’ and Mothers’ Health

Protection Act of 1996 (NMHPA).

The agency received more than 100

comments. It also carefully

considered public comments received

on behalf of employees, dependents

and others seeking health coverage, as

well as employers, plan

administrators, and health insurance

issuers in developing the interim

compliance-related guidance under

MHPA. The agency is continuing to

consider such comments in the

development of future NMHPA

guidance.

32










participation, would be able to

diversify up to 50 percent of their

account balances over a 6-year

period under diversification rules

similar to ESOPs. (The majority

wanted stronger measures and a

majority recommended that all

participants in defined

contribution plans except ESOPs

be given the right to diversify their

account balances into securities or

real property other than employer

assets when they become vested.)

For Nonpublicly Traded

Employer Securities

Limit the investment of defined

contribution assets in nonpublicly

traded employer securities to an

amount equal to 10 percent of the

market value of plan assets or that

the plan follow the ESOP rules

with respect to employer

securities.

Disclosure

Establish rules for disclosure to

plan participants about company

stock and performance and risk.

The Merits of Defined

Contribution vs. Defined

Benefit (DB) Plans With an

Emphasis on Small

Business Concerns

Have the Secretary support legislative

and regulatory changes to restore the

viability of defined benefit plans, and:

Repeal the 150 percent of Current

Liability Limit;

ERISA Advisory Council

In 1997, the Advisory Council on Employee

Welfare and Pension Benefit Plans focused on

the following initiatives: employer assets in

ERISA employer-sponsored plans, the merits

of defined contribution vs. defined benefit

plans with an emphasis on small business

concerns, and soft dollars/commission

recapture.

Following are the final recommendations

presented by the three working groups.

The views of the working group do not

neccessarily reflect those of the Department.

Employer Assets in ERISA

Employer-Sponsored Plans

For Employer Real Property

Limit on the investment of defined

contribution plan assets in employer

real property equal to 10 percent of the

market value of the plan assets.

Revoke the exemption from

diversification for the holding of

qualifying employer real property by

eligible individual account plans and

the exemption from prohibited

transactions for certain acquisitions of

qualifying employer real property that

are in excess of the 10 percent

limitation.

For Publicly Traded Employer

Securities

Extend the ESOP diversification rules

to all participants in defined

contribution plans except employee

stock ownership plans (ESOPs). Such

participants, who have reached age 55

with at least 10 years of plan







33



—
Change the limits on benefits for DB plans

to include:

the maximum dollar increased to at

least the 1982 levels as indexed;

double the $10,000 minimum annual

cap for lower paid employees and

index it;

restore the $75,000 floor for actuarial

reductions at age 55 and older; and

eliminate the requirement of actuarial

reductions in benefits that commence

between age 62 and the Social

Security retirement age.

Permit pretax contributions to defined

benefit plans;

Remove IRS regulatory delay and

uncertainty about cash balance plans

(Asked for guidance from Treasury for

such plans, which combine features of

both defined benefit and defined

contribution plans);

Create a Simplified DB Plan for small

employers (Explicitly

recommended the SAFE proposal by

Reps. Pomeroy, Johnson and

Fawell as a starting point for such a

plan);

Increase the maximum compensation

limits for defined benefit plans,

recommending the compensation limit

for these be increased to at least

$235,000 to encourage more plan

formation;

Ask for further study of in-service

distributions (Because of the

growing use of pre-retirement

distributions, the group requested a

further study on “leakage” from the

system);

Amend ERISA so that mandatory

annual disclosure of benefits be

required in defined benefit plans on

participants’ projected

retirement and vested accrued

34

—

—

—

—

—

benefits;

Have the Pension Benefit

Guaranty Corporation assume

an educational role in

recommending the formation

of defined benefit plans.

Soft Dollars/Commission

Recapture

Recommendations for DOL

Modify Form 5500 requiring plan

sponsors to list all fees greater

than $5,000 paid with directed

brokerage.

Add to the Form 5500 a question

that requires plan sponsors to

certify they are complying with

requirements of ERISA Technical

Release 86-1 in using directed

brokerage services.

Recommendations for the

Securities and Exchange

Commission (SEC)

Tighten Section 28(e) definition of

“research” to better determine

what can justifiably be purchased

with soft dollars.

Prepare a specific list of which

brokerage and research services

are acceptable purchases with soft

dollars.

Require investment managers to

provide to each client full

disclosure of all trades for that

client involving soft dollars and

that the benefits investment

—



1)

2)

3)

4)

—



—
managers receive from those soft

dollars. Require that investment

managers provide a description of

their policies involving soft dollars.

Disclose external research provided to

investment managers in a summary

form on Form ADV filed with the

SEC.

Recommendations from a Minority

of the Members

Repeal Section 28 (e) for employee

benefit plans only, thereby eliminating

the safe harbor for research purchases.

Eliminate the use of soft dollars for

employee benefit plans. This would

require brokerage firms to unbundle

their services and investment

managers to pay separately for

execution and research with hard

dollars.

Recommendations Involving Plan

Sponsor Guidance

(The following individual

recommendations were included in the

report and were designed to further

educate plan sponsors on their

fiduciary responsibilities.)

Avoid soft dollar conflicts of

interests by hiring only consultants

with no financial arrangements with

brokerage firms.

Have an independent accountant

audit soft dollar income disclosure

to plan sponsors by investment

managers and consultants as long

as it is cost beneficial.

Have plan sponsors obtain copies

of brokers’ and investment

managers’ projected directed

brokerage budgets and, if

applicable, soft dollar budgets.

Provide for monitoring of soft

dollar brokerage by parties with

sufficient expertise and

independence, with no vested

interests to protect.

Require written disclosure of

potential conflicts of interest for

all contracts with investment

managers and consultants.

Require disclosure in contracts

with consultants of all

compensation received from

investment managers either

through the sale of services or

through directed brokerage

arrangements.

Require disclosure of investment

managers’ contracts to plan

sponsors of how managers pay for

research and how the pension plan

benefits from this research.

Have consultants and investment

managers acknowledge to plan

sponsors their fiduciary status in

writing.

Obtain written confirmation of

oral representations of brokerage

arrangements made by consultants

and investment managers.

Have plan sponsors create specific

guidelines for responsible soft

dollar and directed brokerage

programs.

—

—

—

—

—

—

—

—

—

35

—




Accounting

Marilee Lau

KPMG Peat Marwick

Investment Management

J. Kenneth Blackwell

Treasurer, State of Ohio

Actuarial Counseling Field

Zenaida M. Samaniego

Equitable Life Assurance Society

of the United States*

Employee Organizations

Joyce A. Mader

O’Donoghue & O’Donoghue*

Employee Organizations

(Multiemployer Plans)

Michael R. Fanning

Central Pension Fund, International Union

of Operating Engineers and Participating

Employers

Employee Organizations

(Multiemployer Plans)

Vivian Lee Hobbs (deceased, June 1997)

Arnold & Porter

Employer Organizations

Richard McGahey

Neece, Cator, McGahey & Associates, Inc.

Carl S. Feen

CIGNA Financial Advisors*

Employer Organizations

(Multiemployer Plans)

Neil M. Grossman

Association of Private Pension and

Welfare Plans

General Public

Thomas J. Mackell, Jr.

Simms Capital Management, Inc.

General Public (Pensioners)

Victoria Quesada

Attorney-at-Law*

General Public

(Multiemployer Plans)

James O. Wood

Louisiana State Employees’ Retirement

System (LASERS)

Investment Counseling

Thomas J. Healey

Goldman, Sachs & Co.*

Insurance Field

Kenneth S. Cohen

Massachusetts Mutual Life Insurance

Corporate Trust

Barbara Ann Uberti

Wilmington Trust Company

ERISA Advisory Council 1997 Members

*Terms for these members expired in November 1997.

36