One of the provisions of the Pension Protection Act of 2006 enables enables plan sponsors to offer investment advice to employees without exposing themselves to liability for the outcome of that advice. While the Department of Labor has forthcoming regulations that will further clarify a plan sponsor's responsibilities, William Arnone and Lynn Finkelstein, both Employee Financial Services Practice Leaders with Ernst & Young, say you should be thinking about whether offering such advice is the right decision for your organization.
When actuaries arrive at your door each year, armed with reams of files and the news about the amount your company needs to contribute to your defined benefit plan for the coming year, they really give it their best efforts. However, it?s an unusual year in which everything goes according to plan.
Stock options have been a popular way for many public companies to
tie executive performance to shareholder concern. An option is the right the
company grants to an employee to buy stock during a specified time in the
future at a specified price.
