Printer Friendly Version
Release Date: August 9, 2007
Release Number: 07-1219-NAT
Contact Name: Rick Manning/Gloria Della
Phone Number: 202.693.4676/202.693.8664
Washington —The U.S. Department of Labor
today announced a final regulation implementing the department’s
authority to assess civil penalties against plan administrators who fail
to give employees notice of the right to sell company stock in their
pension plan accounts.
“The Pension Protection Act enacted President Bush’s
proposal to guarantee workers the right to sell company stock in their
401(k)-type plans,” said Bradford P. Campbell, assistant secretary of
the Labor Department’s Employee Benefits Security Administration. “The
new right to diversify is an important step in improving retirement
security. This rule enforces that right by penalizing plan officials who
fail to give workers the required notice.”
The Pension Protection Act (PPA) established rights
of plan participants and beneficiaries to sell the company stock in
their accounts and reinvest the proceeds into other investments
available under a plan. The PPA requires plan administrators to notify
participants and beneficiaries of this new right and of the importance
of diversifying the investment of retirement account assets. The PPA
also gives the department authority to assess civil monetary penalties
up to $100 per day against plan administrators for each violation of the
new notice requirement.
This regulation will be published in the Federal
Register on August 10. The public may submit comments to the department
via e-mail sent to e-ORI@dol.gov or through the federal e-rulemaking
portal at www.regulations.gov. Paper-based comments should be sent to
the Office of Regulations and Interpretations, Employee Benefits
Security Administration, Room N-5669, U.S. Department of Labor, 200
Constitution Avenue, NW, Washington, DC 20210, Attention: 502(c)(7)
Civil Penalty.
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page.
|