United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2002-02-27 monographic deposited born digital 14 p. GA 1.13:GAO-02-480T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-480T P0b002ee1803a1641 f:d02480t DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-02-480T machine generated eng fdlp REPORT GAOREPORTS-GAO-02-480T GAO-02-480T Employee benefit plans Employee retirement plans Financial instruments Financial management Retirement benefits Retirement pensions Investments Information disclosure Enron Corporation Stock Fund Thrift Savings Plan Employee Stock Ownership Program Testimony A02821 The collapse of the Enron Corporation and the accompanying loss of employees' retirement savings highlight vulnerabilities in the private pension system and help focus attention on strengthening several aspects of this system. Diversification of pension assets is crucially important, particularly where the use of defined contribution plans--those plans in which employees bear the investment risk--is increasing. The Enron situation suggests the importance of encouraging employees to diversify but any action would have to be balanced against the desires of employers and employees to maintain a portion of retirement savings in company stock. Workers need clear and understandable information about their pension plans to make wise retirement saving decisions. While disclosure rules state that plan sponsors must provide plan participants with a summary of benefits and rights under their plan and notification when plan benefits are changed, such information is not always clear, particularly in complex plans like floor-offset arrangements. Also, employees, like other investors, need reliable and understandable information about a company's financial condition and prospects. Fiduciary standards form the cornerstone of private pension protections. These standards require plan sponsors to act in a manner that is solely in the interest of plan participants and beneficiaries. Investigations of Enron's actions will determine whether plan fiduciaries acted in accordance with these responsibilities. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-480T/html/GAOREPORTS-GAO-02-480T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-480T/pdf/GAOREPORTS-GAO-02-480T.pdf GAO-02-480T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-480T Testimony GAO-02-480T; Private Pensions: Key Issues to Consider Following the Enron Collapse; Employee benefit plans Employee retirement plans Financial instruments Financial management Retirement benefits Retirement pensions Investments Information disclosure Enron Corporation Stock Fund Thrift Savings Plan Employee Stock Ownership Program Public Law 107-16