Enron recordkeeper not named in suit; DOL sees no liability for directed trustee.(News)(Northern Trust Co. )

Business Insurance, July, 2003 by Jacobius, Arleen

Byline: ARLEEN JACOBIUS Houston-The Labor Department may be softening its position on the fiduciary liability of defined contribution plan providers. Noticeably absent as a defendant in the Labor Department's June suit against Houston-based Enron Corp. and more than 20 Enron executives was its recordkeeper and trustee, Northern Trust Co.

of Chicago. "We looked at a number of potential defendants, including Northern Trust, and the evidence was not there to support an allegation of breach of fiduciary duty,'' said Ann Combs, assistant secretary in the Employee Benefits Security Administration in Washington. Northern Trust was a directed trustee and recordkeeper, and as such took direction from the named fiduciaries, Ms. Combs said. Directed trustees...

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