GAO Report On Pension Conflicts Draws Skepticism

Law360 (July 13, 2007, 12:00 AM EDT) -- The U.S. Government Accountability Office’s June report, which warned that conflicts of interest among pension consultants could drive down annual returns in employees’ defined-benefit pension plans, has drawn a skeptical response from many employment lawyers.

While these conflicts of interest can come up, lawyers questioned how the conflicts could directly affect a plan’s returns and claimed that a defined-benefit plan’s poor investment performance tended to put employers—not their workers—in a tough position.

“I thought the data was inconclusive. There were a few companies with strikingly bad...
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