RETIREMENT FUND LOSSES

[Guest JD698]

Taft Hartley Funds (pension and annuity) have lost a significant amount of money in the last month due to stock market problems. Are there any liability issues that the Trustees should be concerned with in terms of dealing with the funds that remain. (should they sell or stay the course)

Any ideas??

[GBurns]

I do not think that any of us could or should tell the Trustees what to do. We have no info and we have no crystal balls left.

Putting money into funds or stocks has always been a gamble. So sometimes you win, sometimes you lose.

[J Simmons]

The trustees should, under these circumstances as always, act prudently in the best and sole interests of the plan participants and beneficiaries, keeping in mind the liquidity needs of the plan to pay benefits.

The finger pointing will likely increase, so the need to investigate thoroughly and document the fiduciaries' findings and decisions is more critical than ever.

I've found that the non-published opinion of March 21, 2006 in the case, In re RCN Litigation, U.S. District Court, New Jersey, Master File No. 04-5068, to be useful in providing discussion of specific steps taken in satisfying fiduciary duties with respect to investment issues.

[Guest JD698]

Maybe my question wasn't quite clear. I was asking if the trustees made the decision to sell (low) or if they chose to stay the course would there be liability issues either way if the end result was bad.

Sorry if i'm still not being clear in my question.

[GBurns]

I do not think that anything could be added the reply from J Simmons.

[Guest JD698]

Thanks