Reps. Christopher Shays, R-Conn., and Donald Payne, D-N.J., today reintroduced legislation that would give the Labor Department greater enforcement authority. Plans with more than 100 participants would be subjected to a full-blown audit by outside accountants instead of going through a ``limited scope'' audit of problem areas.
The legislation also would require plan administrators or accountants to directly report serious cases of fraud and abuse involving plan assets, and would create new standards for accountants auditing pension plans. The legislation, virtually identical to that requested by the administration June 10, also is similar to that introduced last year, which went nowhere.
Board members for the $1.4 billion Milwaukee County Employees' Retirement System will begin educational sessions in September regarding international emerging markets, said Jac R. Amerell, director.
The board hasn't made a decision on emerging markets, but will invite its three existing international equity managers to discuss the matter, he said. The fund's international managers are Capital Guardian; Grantham, Mayo, Van Otterloo; and Rowe Price-Fleming.
American Century and J.P. Morgan today formally announced J.P. Morgan will purchase a 45% interest in American Century for about $900 million. The two firms also announced they will market services to corporate defined contribution plans. Each company also will sell the other's mutual funds to financial intermediaries and institutional investors.
American Bankers Association, Washington, may replace the State Street International Equity Fund with another fund or add another international fund to the eight investment options in its 401(k) plan, said Jerry Peterson, director of human resources.
Officials for the $23 million plan have not been satisfied with the State Street Global fund's overall performance, which can be explained by the fund's heavy investment in Japanese stocks, he added. A decision will be made at the next board meeting in October.
Los Angeles City Employees' Retirement System has given new three-year contracts to existing managers Morgan Grenfell Asset Management and Templeton Investment Counsel. Morgan Grenfell manages a $438.6 million global bond portfolio, and Templeton runs $272.1 million in Pacific Basin equities for the $6.3 billion system.
The Department of Labor today issued a guidebook on the division of pension assets following divorce, otherwise known as qualified domestic relations orders. The book is targeted to plan administrators, plan sponsors, lawyers, participants and beneficiaries.
The 91-page book was made public by Secretary of Labor Alexis M. Herman at a WEB, the Network of Benefits Professionals meeting in Chicago. Ms. Herman said the guide was structured to provide a ``user-friendly approach'' in discussing the division of pension benefits for couples involved in divorce proceedings.
British Airways Pension Fund, London, named Bankers Trust global custodian of its £7.4 billion ($12 billion) in worldwide investments. Bankers Trust also will provide securities lending and ancillary administrative services. No other details were available.
Occidental Petroleum, Los Angeles, will be adding two new options and dropping another in its $886 million 401(k) plan, said Andrew Bednarz, manager of benefit plan investments.
The Putnam International Growth Fund and a small-cap equity separate account managed by Sanford C. Bernstein will be added effective Jan. 1. The plan will drop a money market fund managed by its trustee, Northern Trust, because the plan also offers a stable value fund. After the changes, Occidental's plan will offer nine choices.
DeMarche Associates assisted.
United States Holocaust Memorial Museum, Washington, hired Cramer Rosenthal McGlynn as the first small-cap manager for its endowment fund.
The firm will handle 10% of the fund's assets, said Zelda Silberman, special assistant for endowment and investment policy. She would not say how much the new fund has in assets, but said the endowment is still growing. Cambridge Associates assisted.
Southfield (Mich.) Employees' Retirement System hired two money managers, terminated one and reduced the allocation to a fourth manager.
The roughly $60 million fund hired GLOBALT for an $18 million portfolio that invests in stocks of U.S. companies doing sizable business abroad, and Pacific Income Advisors for $24 million in U.S. fixed income.
Funding will come from the termination of Munder Capital, which had managed roughly $30 million for the fund split between U.S. equities and U.S. fixed income, and the elimination of the roughly $15 million fixed-income portfolio handled by Independence Investment Associates. Independence still manages about $15 million in U.S. equities for the fund, said Jim Pierce, deputy treasurer