Is Chevron lurking in your retirement fund? If so Move Your Money

Via Huffington Post:

Karen Hinton: From Ecuador to Richmond to Nigeria, Chevron Flouts Safety, Lacks Respect for Communities Where It Operates

Want to understand the back story for Chevron’s latest environmental disaster in Richmond, California?

Read this article about how Chevron essentially forced 154 of its Nigerian workers to jump from a smoking oil rig minutes before it exploded into the ocean after the company refused to evacuate them. Then, watch this video about Chevron’s devastating human rights violations and fraudulent cover-up in Ecuador.

It has been clear for some time that a deep cultural rot has taken hold in Chevron’s management team. The company is riddled by an outdated corporate governance structure designed to maintain a weak-kneed board of directors incapable of policing managers who don’t care to address fundamental operational and safety problems. (See this press release and an article about Chevron’s being named a company with some of the worst business practices in the U.S.)

For Chevron, it’s about pure greed and lies. Its marketing mantra — we respect the communities where we operate — is an advertising industry joke.

Chevron CEO John Watson and General Counsel R. Hewitt Pate — a disciple of Karl Rove — both of whom are hopelessly conflicted on these issues are being paid huge amounts of money to make sure Chevron continues to pad its pockets at the expense of the communities where it operates.

On recent conference calls with analysts who provide information to shareholders, Watson repeatedly misrepresented and distorted the facts about the $19 billion damage award in Ecuador. He has called the case a fraud and the Ecuadorians “criminals” — basically blaming the victims, the usual tactic of Chevron’s top brass.

The disaster at Chevron’s refinery in Richmond — where over 1,000 people were sent to the hospital because of toxic fumes — is another case in point. As Richmond community leader Andres Soto said on Democracy Now!, Chevron is engaging is more “mendacity” and “misrepresentation of the truth”:

Read more via Karen Hinton: From Ecuador to Richmond to Nigeria, Chevron Flouts Safety, Lacks Respect for Communities Where It Operates.

What Plan Fiduciaries Should Know About The Department Of Labor Final Regulation On Investment Advice

Clear guidelines for how retirement plan advisors can give advice to plan participants.  Employees can use the guidance.  Employers should not be offering investment strategies.  Most plans have a registered financial advisor or investment advisor available – here is how to use the resource.

Executive Summary

Are most retirement plan participants more likely to know the name of the latest reality TV show than the meaning of asset allocation? 401(k) plan sponsors have long sought to educate their employees about retirement planning and saving. The goal of investment advice in the workplace has largely been to change behavior and make savers and investors out of often disinterested and overwhelmed employees. But, for many years, offering investment advice to participants was a prohibited transaction under ERISA, and most advisers’ hands were tied. That has now changed. The U.S. Department of Labor (DOL) published a final regulation on October 25, 2011 under the Employee Retirement Income Security Act of 1974, as amended (ERISA), and parallel provisions of the Internal Revenue Code of 1986, as amended (the Code). The regulation allows investment advisers to provide certain types of investment advice to participants and beneficiaries in individual account plans, such as 401(k) plans, and to beneficiaries of individual retirement accounts (IRAs) without engaging in prohibited transactions.

The DOL regulation became effective as of December 27, 2011.
The new DOL regulation provides an exemption from the prohibited transaction rules in ERISA and the Code if a “fiduciary adviser” (defined below) gives investment advice to a participant or beneficiary under an “eligible investment advice arrangement” (defined below) that

A. compensates the adviser with fees that do not vary based on the investments a participant or beneficiary selects (a level fee arrangement), or

B. provides investment advice through the use of a computer model that an independent expert

certifies as unbiased (a computer model arrangement), or

C. satisfies both (A) and (B).

Download the entire Guide Here