Ronald S. Cohen, chairman of the American Institute of Certified Public Accountants, fears a Labor Department decision could ``deny workers complete information about the ability of their plan to pay for promised benefits.''
At issue is a recent decision by the Labor Department not to take enforcement action against health and welfare benefit plans covering unionized workers whose financial statements do not comply with generally accepted accounting principles governing the disclosure of health care expenses promised to retired workers.
Failure to insist plans adhere to the rule also would affect the ability of outside auditors to report on the financial health of these plans, as required by federal pension law, Mr. Cohen wrote in a letter to Labor Secretary Robert Reich. The accounting standard requires plans to give information to workers, sponsors, trustees and others to help them assess the plan's ability to pay present and future benefits when due.
The accounting standard began covering multiemployer plans this year.
Consolidated Papers Inc., Wisconsin Rapids, Wis., hired two managers to add four investment options to its $100 million 401(k) plan, said John D. Steinberg, treasurer.
Fidelity will offer three portfolios: its value fund; OTC fund; and S&P 500 index fund. Templeton will offer its foreign fund.
The new choices will bring to 12 the investment options the plan offers participants.