ERISA Case
Carter Hawley Hale also is known as a famous case study regarding its retirement plans. Because it offered its employees a profit-sharing plan, and not a retirement fund, under the Federal ERISA pension plan law, the trustee was under no obligation to diversify the fund. Because of the nondiversification and continued purchase of Carter Hawley Hale stock, the employee fund soon was stuck with a precipitous loss in value. Its employees’ low morale contributed to its problems.
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Famous quotes containing the word case:
“The circumstances with which every thing in this world is begirt, give every thing in this world its size and shape;—and by tightening it, or relaxing it, this way or that, make the thing to be, what it is—great—little—good—bad—indifferent or not indifferent, just as the case happens.”
—Laurence Sterne (1713–1768)