|
|
Release Date: 12/14/1998 Release Number: USDL:
99-9 Contact Name:Sharon Morrissey Phone Number:
202.219.8921 |
|
The U.S. Department of Labor's Pension and Welfare Benefits
Administration took a major step today to address concerns of the employee
benefit industry about fiduciary liability and the Year 2000 (Y2K) computer
problem. To help the benefit community understand these issues, the agency is
releasing sample questions used by the
agency's investigators to evaluate Y2K compliance in the course of civil
investigations of benefit plans across the United States. |
This release is in response to hundreds of inquiries from
concerned employee benefit plan administrators and trustees and from their
service providers who want to know what PWBA information is seeking from the
plans to show they are working to solve their internal computer problems and to
head off any potential disruption in service to their participants and
beneficiaries. Like most business operations, employee benefit plans rely on
computers to perform critical operations such as benefit calculations and
payments. |
Earlier this year, the agency issued two news releases emphasizing
that plans needed to address Y2K issues relating to their own computer systems.
In addition, the agency widely distributed a Y2K pamphlet on commonly-asked
questions and answers about the compliance issue which was posted on the
agencys website at www2.dol.gov/pwba/ . The pamphlet concentrates on the
fiduciary liability of plan officials and service providers in addressing the
Y2K issue in connection with any computer systems their plans utilize. |
According to Alan Lebowitz, deputy assistant secretary for program
operations at PWBA, Since we first discussed this issue publicly in
February, weve met with officials from umbrella groups and companies
throughout the employee benefits industry and talked before dozens of groups
and with hundreds of individuals. It was obvious we needed to provide more
assistance so we decided to release the sample questions weve given our
personnel to use when they are in the field. |
It is our intent today not to scare the plan
community, Lebowitz concluded, but to further accentuate the
critical nature of this issue and to help plan officials focus even more effort
on voluntarily working to solve this complex problem. This will assure their
plan participants and beneficiaries that there is no disruption in receiving
their benefits -- be it health claims or retirement checks. |
PWBA enforces Title I of the Employee Retirement Income Security
Act (ERISA) of 1974 and has jurisdiction over approximately 700,000 private
sector retirement plans and approximately six million health and welfare plans.
|
U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7755. |
|