New York Times business columnist Gretchen Morgenson lauded the attempt by the EBSA’s Phyllis Borzi to change the rules related to the retirement plans of bankrupt companies. Reviewing the plight of Penn Specialty, whose $4 million plan remained in limbo while the company went through bankruptcy proceedings racking up fees and limiting participants’ access to their money, Morgenson sees hope in the proposed regulations.
With 401(k) plans front and center, fairness and common sense need to prevail. The rules on bankrupt plans are a good start – there’s a lot more to come, hopefully, to make plans simpler and better designed for success.
