Plan loans and the Banc One stock represented just 2.5 percent of plan assets.

All the investment risk of plan assets for these guaranteed benefits is borne by the employer.

Employers must comply with Federal laws when establishing and running retirement plans, and the consequences of not prudently managing plan assets are serious.

The plan assets of the organizational retirement plans in question sometimes reside on a trading platform controlled by the administration firm.

Franklin Templeton Investor Services has started a 401(k) program for employers with 100 workers or $500,000 in plan assets.

Most Blue Cross executives vigorously oppose the idea that they should transfer plan assets as part of converting to for-profit operation.

As of March 31, 1996, the value of the plan assets was almost $459 million.

The benefits that workers at Sperry, which became Unisys in 1986, received were not affected because Hancock handled only some of the plan assets.

Federal law requires that retirement plans fund promised benefits adequately and keep plan assets separate from the employer s business assets.

Thus, the investment risks and rewards on plan assets are borne solely by the employer.