By Richard Mullins
Democrat and Chronicle

(Saturday, February 2, 2002) -- Two New York legislators have called for a state investigation into the pension and retirement accounts at Global Crossing Ltd.

The actions follow the bankruptcy filing of Global Crossing on Monday, the fourth-largest bankruptcy in U.S. history. As part of a voluntary filing, the value of common stock at Global Crossing will be wiped out.

"I hope they will look at the pattern of how people invested in Rochester Telephone, a rock-solid company, put that stock in their 401(k) for their retirement, and how they ended up with nothing," said state Sen. Richard A. Dollinger, D-Brighton.

Assemblyman Joseph E. Robach, D-Greece, also called for the investigation in a letter to the state attorney general and comptroller. "We understand the financial challenges companies are facing, but retirement funds of their workers must be safeguarded against the devastation wrought by bankruptcy," Robach said.

Mary Moore, a spokeswoman for Global Crossing, said the company had not received information about potential probes and had no comment.

Pension rules have become a key political issue. On Friday, President Bush proposed rules that would require companies to give workers more frequent reports about 401(k) plans and increase employer accountability when workers are barred from trading on the savings accounts.

Bush's proposal would not limit the portion of workers' 401(k) plans that could be invested in their employers' stock, as many in Congress want.

Includes reporting by The Associated Press.