The Labor Department is expected to take several derivatives cases to court this year, involving collateralized mortgage-backed securities, a Labor Department source said. The source wouldn't say whether the defendants will be plan sponsors or money managers.
More than 10 cases are being seriously considered for trial, the source said. But any action will be delayed because of the federal government shutdown that resulted from the balanced budget stalemate, the source added.
The $18.8 billion Los Angeles County Employees Retirement Association plans money manager searches for domestic growth and small-cap equity managers. No timetable has been set, but the searches are expected in the next few months. The money will come from existing money managers following a restructuring of the pension fund.
Executives may be able to stash more cash in their retirement plans if a provision in the Republican budget package survives the free-for-all between the Clinton administration and Republican lawmakers. The provision would redefine ``highly compensated employees'' to just those in the top 20% of a company's payroll; now, all executives making six-figure incomes are considered highly paid.
The difference is important, because the amount highly paid employees can put into their 401(k) plans is tied to the amount rank-and-file workers contribute. The provision was in the budget bill vetoed by President Clinton last month