TITLE

Fiduciary Concerns and Y2K

AUTHOR(S)
Shanney-Saborsky, Regina
PUB. DATE
February 1999
SOURCE
Journal of Financial Planning;Feb1999, Vol. 12 Issue 2, p22
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article looks at the implications of the Year 2000 (Y2K) computer problem for U.S. financial planners' fiduciary responsibilities. While it is difficult, at best, to predict what will occur after December 31, 1999, the Y2K issues are potentially serious since they affect not only the internal processes of a company but also the electronic communications between various entities, including financial services institutions. The U.S. Department of Labor (DOL) has stressed that, regardless of the nature or type of audit, questions regarding Y2K compliance will be asked in every case under investigation. A fiduciary must discharge these responsibilities using the standards imposed by the Employee Retirement Income Security Act of 1974, which requires that the fiduciary exercise the care, skill and diligence of a prudent man under similar circumstances. In addition, to the extent that a Y2K compliance issue may not be resolved before the century change, the fiduciary should be prepared with contingency arrangements to protect the participants and beneficiaries in the event of a computer disruption. In connection with benefit issues, the procedures should include identification of the systems needed for plan operation and the individual responsible for each system, both internally, and--if applicable--externally. With respect to communication issues, the DOL is encouraging plan administrators to disclose to participants and beneficiaries any Y2K issues in connection with the operation of the plan or issues that may affect a participant's use of their individual accounts.
ACCESSION #
1570689

 

Related Articles

  • The millennium time bomb. Longo, Tracey // Financial Planning;Sep98, Vol. 28 Issue 9, p180 

    Focuses on the need for financial planners in the United States to comply to the year 2000 (Y2K) computer requirement. Action taken by the Securities and Exchange Commission to ensure advisers' compliance with Y2K; Program recommended for advisers to achieve a Y2K compliant computer version.

  • SEC Year 2000 monitoring requirements are increasing for portfolio managers.  // Corporate Board;May/Jun99, Vol. 20 Issue 116, p28 

    Reports on the increase of requests for data on corporate disclosures on the year 2000 computer problem in the United States. Disclosure requirements of the United States Securities & Exchange Commission.

  • Speak up with Y2K problems.  // Crain's Detroit Business;12/14/98, Vol. 14 Issue 50, pE-3 

    Opinion. Comments on the obligation of Detroit, Michigan-based publicly traded companies to investors to disclose the amount they are spending and the types of problems they anticipate concerning the year-2000 or Y2K computer glitch. Third-quarter 1998 reports of the area publicly traded...

  • Year 2000 Disclosure Bill Introduced. Fisher, Mary Jane // National Underwriter / Life & Health Financial Services;11/24/1997, Vol. 101 Issue 47, p9 

    Reports that US Senator Bob Bennett of Utah, has introduced a bill to require publicly-traded corporations to disclose specific information about the readiness of their computer systems for the year 2000. Remarks of Senator Bennett on Year 2000 problems; Requirements set by the proposed CRASH...

  • Insurers support bill limiting Y2K liability. Fisher, Mary Jane // National Underwriter / Life & Health Financial Services;8/31/98, Vol. 102 Issue 35, p5 

    Focuses on United States insurers' support for a bipartisan bill that would limit the liability of companies willing to share information on possible computer problems in the transition to the year 2000. Aspects of the Year 2000 Readiness Disclosure Act; Aim to address concerns regarding Year...

  • Some Y2K costs may be passed along to plans. Thompson, Robert W. // HR Magazine;Nov98, Vol. 43 Issue 12, p10 

    Reports on the United States Pension and Welfare Benefits Administration's policy that allows employers to pass some of their Year 2000 computer system upgrade expenses to their retirement and health plans. Objective of the agency's move; Terms of the agency's provision for employers.

  • Rule change to allow loans at no interest.  // Pensions & Investments;12/13/1999, Vol. 27 Issue 25, p36 

    Reports that the United States Pension and Welfare Benefits Administration has proposed a rule change that would allow pension plans to receive interest-free loans and extension of credit from their sponsors or service providers for unanticipated year 2000 computer problems.

  • Year 2000 Computing Crisis: Progress Made at Department of Labor, But Key Systems at Risk: T-AIMD-98-303. Willemssen, Joel C. // GAO Reports;9/17/1998, p1 

    The Department of Labor has made progress in addressing the Year 2000 computing crisis, but risks remain in several areas, including making benefit payments to laid-off workers, collecting labor statistics, and ensuring accurate accounting for pension benefits. Some of the systems supporting...

  • U.S. Labor Department wipes N.M. Y2K Debt Off the Books.  // New Mexico Business Journal;Feb2006, Vol. 30 Issue 2, p41 

    Reports on the announcement made by U.S. Senator Peter Domenici regarding the resolution of the millennium rollover dispute between New Mexico and the U.S. Department of Labor. Amount spent to get the computer networks in New Mexico set for the year 2000; Grants awarded by the federal...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics