Labor Department Announces Final Rules to Help Workers in Abandoned 401(K) Plans

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WASHINGTON, April 20 /U.S. Newswire -- The U. S. Department of Labor today announced the publication of final rules and a class exemption that allow financial institutions to take responsibility for abandoned 401(k) plans and distribute the plans' assets to covered workers and their families. The department estimates that 1,650 401(k) plans, covering 33,000 workers, are abandoned by their sponsors each year.

"Today's rules will help workers gain access to their retirement benefits by empowering financial institutions that hold the assets of abandoned plans," said Assistant Secretary of Labor Ann L. Combs. "Based on public reaction to the proposed rules, we are very encouraged by the willingness of the financial and plan service provider community to work together to address the abandoned plan problem for the thousands of workers whose benefits are unavailable to them."

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Labor Department Announces Final Rules to Help Workers in Abandoned 401(K) Plans

The department currently deals with abandoned plans on a case- by- case ...

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