Retirees at Risk: The Executive Life Bankruptcy : Hearing Before the Subcommittee on Labor of the Committee on Labor and Human Resources, United States Senate, One Hundred Second Congress, First Session, Examining the Risk Faced by Retirees who Receive Their Retirement Benefits Through Insurance Annuity Contracts, June 20, 1991, Volume 4 |
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A.M. Best action administration AFL-CIO ance companies annuities from Executive annuity provider annuity purchase BALL believe Benefit Guaranty Corporation BYWATER California insurance California insurance commissioner Chairman Coleman Company committee compa Congress Connecticut conservatorship defined benefit Department of Labor Drexel ELIC employers enforcement ERISA ERISA fiduciary responsibilities ERISA's fiduciary Executive Life annuities Executive Life Insurance Executive Life's GIC's guarantee funds insurance companies insurance industry investigation issues junk bonds lawsuits LOCKHART MagneTek Maxxam McConnell McCrory Stores ment million obligations overfunded Pacific Lumber pany participants and beneficiaries PBGC PBGC's Pension Benefit Guaranty pension plan plan assets plan participants plan sponsors plan termination plan's policyholders prepared statement problems purchase annuities purchase of annuities PWBA Raymark Reagan-Bush administration receive regulation regulatory retirement benefits Revlon risk selection Senator DODD Senator JEFFORDS Senator METZENBAUM sion standard termination STATEMENT OF SENATOR statute subcommittee surance takeover Thank tion U.S. SENATOR workers and retirees
Popular passages
Page 16 - A fiduciary shall discharge his duties with respect to a plan solely in the interest of the participants and beneficiaries and for the exclusive purpose of • providing benefits to participants and their beneficiaries...
Page 24 - PBGC's new standard termination regulation, and the Advance Notice of Proposed Rulemaking, to help ensure that happens. However, the key to protecting annuitants is not to create another unsound federal insurance program, but rather to strengthen the mechanisms already in place — state regulations and the safety net provided by the state guarantee funds and life insurance practices. Thank you for the opportunity to speak before the Subcommittee. I welcome any questions you may have.
Page 1 - OF THE COMMITTEE ON LABOR AND HUMAN RESOURCES, Washington, DC. The subcommittee met, pursuant to notice, at 9:30 am, in room SD-430, Dirksen Senate Office Building, Senator Howard M.
Page 16 - ... available to the plan. The selection of an annuity provider is particularly sensitive when an employer decides to terminate an overfunded plan and recapture any excess assets that remain after all benefits have been paid. In this situation any money saved by purchasing a more risky, albeit lower priced, annuity reverts to the employer. Because ERISA requires that the fiduciary act solely in the interest of the participant whose interest lies in receiving the safest annuity available, the fiduciary...
Page 25 - Insurer means a company authorized to do business as an Insurance carrier under the laws of a State or the Dis-trict of Columbia. Irrevocable commitment means an obli-gation by an insurer to pay benefits to a named participant or surviving beneficiary. If the obligation cannot be cancelled under the terms of the insurance contract (except for fraud or mistake) without the consent of the participant or beneficiary and is legally...
Page 26 - ... vesting provisions in such plans; that owing to the inadequacy of current minimum standards, the soundness and stability of plans with respect to adequate funds to pay promised benefits may be endangered; that owing to the termination of plans before requisite funds have been accumulated, employees and their beneficiaries have been deprived of anticipated benefits...
Page 15 - Subcommittee's deep concern for the security of workers' retirement benefits that are being provided in the form of insurance annuities. Accrued pension benefits frequently represent the largest form of retirement income for many workers. It is, therefore, particularly important that fiduciaries select the annuity provider wisely. Let me assure you, the Department is taking vigorous enforcement action to protect the retirement benefits of pension plan participants who have worked hard throughout...
Page 21 - We will make every effort to assure that the hard earned retirement benefits of America's workforce are protected. I believe that continued, vigorous enforcement of ERISA, in conjunction with the expedited granting of exemptive relief in appropriate cases, and the issuance of regulatory guidance, represents the soundest approach that the Department of Labor can take in meeting the challenges that face us. Thank you for allowing me the opportunity to testify before you today. I will be pleased to...
Page 19 - In all situations, however, when a fiduciary who is making the annuity purchase decision has an interest in the sponsoring employer that might affect his or her judgment, the fiduciary must take particular care to assure that the decision-making process is not tainted. As a practical matter, most fiduciaries who have this conflict of interest will, at a minimum, need to obtain and follow independent expert advice calculated to identify those insurers with the best claims-paying abilities who are...