Compliance September 12, 2007

Mass. Regulator Says Morgan Stanley Mined CareerBuilder.com for Clients

Morgan Stanley and two Boston-based employees were charged by Massachusetts’ top securities regulator for improperly sifting though job posting Web site CareerBuilder.com to find customers, including potential sources of 401(k) rollover assets.
Reported by

The Web site hosts resumes and includes other valuable information such as employment history, recent salary levels, and vital contact information such as cell phone numbers, according to the complaint from William Galvin, the state’s Secretary of the Commonwealth.

Galvin suggested the employment history information was used to identify potential 401(k) rollover clients.

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The complaint says Arlen Jay Fox looked at more than 1,000 resumes between August 2005 and December 2006 after his boss, David Swartz, gave him a password to access the information. He then used the information to drum up business, according to the charges.

Galvin said the two breached the terms of Morgan Stanley’s contract with CareerBuilder and violated national and state do-not-call lists, where people can ask not to be solicited by phone. However, the investment bank said it was an isolated instance.

Data & Research September 12, 2007

More People Staying in the Workforce Past Age 65

Nearly one-quarter (23.2%) of people between the ages of 65 and 74 were in the labor force in 2006, the highest number in three years and an indication that fewer people are retiring at the traditional retirement age, according to the U.S. Census Bureau’s American Community Survey (ACS).
Reported by

According to Census Bureau data, the number of workers between the ages of 65 and 74 still in the workforce has been slowly increasing; it was 22% in 2004 and 22.5% in 2005.

The number of workers between the ages of 55 and 65 also inched up in 2006 to 62.1%, from 61.7% and 61.1% in 2005 and 2004, respectively. In the 75 years or older age range, there isn’t a clear increase or decrease: 5.7% were still working in 2004, compared to 6% in 2005, and 5.5% in 2006.

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States with some of the lowest rates of older workers in the labor force include West Virginia (15.7%), Michigan (18.8%), and Arizona (19.4%); however, Michigan and Arizona were not statistically different. Some of the highest rates of older workers were found in South Dakota, Nebraska and Washington, D.C., all with about one-third of people in this age group in the labor force.

Among the 20 largest metro areas, Washington, D.C., had the highest percentage of people in the labor force in this age group (31.8%). Others with high percentages include Boston (28.1%), Dallas-Fort Worth (27.9%), Minneapolis-St. Paul (27.4%) and Houston (26.5%), none of which were statistically different from the other.

For more information, visit http://www.census.gov/acs/www/index.html.

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