Labor Department

When Anthony Cosgrove left a job with a small Connecticut payroll company in 2005, he left his 401(k) retirement account behind to avoid a tax liability for a loan he had taken out against his savings. Soon after, the company, Abacus Payroll Systems Inc., went out of business and Cosgrove, 42, has been mired in red tape since, as authorities, including the Labor Department, sort through the mess. He wants his money, but can't get it. Abandoned plans represent a tiny percentage of all company benefit programs, but they serve as a cautionary tale for retirement savers because they can drag on for years while denying participants access to their savings.

WASHINGTON -- Congress and government regulators are planning an array of moves to strengthen oversight of 401(k) accounts, which have become the linchpin of retirement savings for millions of Americans but are often burdened by hidden fees that chip away at their value. Rep. George Miller of California, a member of the Democratic leadership and the new chairman of a committee that has authority on retirement matters, said he planned to hold hearings on 401(k) fees this year as part of a broader effort to examine issues that undermine the financial security of older Americans.

Federal regulators need to boost their oversight of 401(k) retirement plans and adopt a series of changes to ensure full disclosure of hidden costs that can cut into the savings of millions of American workers, a government report recommends. With companies abandoning traditional pensions, 401(k) plans have become a cornerstone of retirement security for an estimated 47 million people. Yet regulation and oversight have not kept pace, the recent report by the Government Accountability Office concluded.

With the new pension law pushing workers into 401(k) plans, reader Beverly Swanson of Pikesville wonders how secure that money is from an employer's grasp. Is there something in the 900-plus-page law, she asks, that allows an employers to tap those assets if the company is sold or runs into financial trouble? Swanson e-mails: "In other words, when you put money in a 401(k) are you going to risk losing your money to your employer? This is of special concern because some employers are automatically taking new employees' money and putting it in 401(k)

Job creation ground nearly to a halt last month in Maryland and unemployment grew, a seeming aberration that economists blamed on labor shortages and rising costs. Employers added just 100 jobs last month, according to preliminary U.S. Labor Department numbers released yesterday. Unemployment was 3.8 percent, up from 3.5 percent in April - though it remained significantly below the national rate of 4.6 percent. Economists sometimes refer to rates under 4 percent as "full employment." "There's softness in labor and employment growth, but the economy in general is still strong," said John Hopkins, associate director for applied economics at RESI, Towson University's research and consulting arm. "I find it just a slight bit surprising ... but it's explainable."

Numbers--The Labor Department said 302,000 people filed for jobless benefits last week, down 35,000 from the previous week.

The economy showed signs of a slowdown in May, creating less than half the number of new jobs analysts expected, the Labor Department reported yesterday. Higher energy prices caused a weakness in manufacturing, retail and service sectors, economists said, and slower housing sales hurt construction. Yet U.S. Commerce Secretary Carlos Gutierrez remained upbeat yesterday, choosing the Allison Transmission plant in White Marsh to promote the nation's economic might. General Motors Corp. is investing $118 million and adding 87 jobs to build fuel-efficient hybrid transmissions.

Intial jobless claims increased 42,000 in the week that ended May 13 to 367,000, the Labor Department said.