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Article: That Enron feeling: WorldCom 401(k) plan down by $775 million.(Statistical Data Included)
- Article from:
- Pensions & Investments
- Article date:
- July 8, 2002
- Author:
CopyrightCOPYRIGHT 2002 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CLINTON, Miss. - WorldCom Inc. employees have been struck by a double retirement benefits whammy: The company stock in their 401(k) plans is almost worthless; and their defined benefit plans, frozen in January 1999, have become underfunded.
With about 40% of their 401(k) assets in company stock, WorldCom employees have watched their account balances plunge by $775 million since the company's accounting woes surfaced on June 17. Since then, shares in the once-powerful telecommunications giant have plummeted to six cents from a high of $64.50 three years ago.
What's more, WorldCom's $461 million in frozen defined benefit assets, inherited in its merger ...