Dep. of Labor Sues 5th Largest Multiemployer Plan Over Alleged Fiduciary Breach

117048243_7cc6bb0b87_z

The Department of Labor this month announced it had filed suit against the International Order of Machinists National Pension Fund – the 5th largest multiemployer pension fund in the country – for multiple alleged ERISA violations.

[Read the official complaint here.]

Details from BenefitsPro:

According to DOL, the trustees […] breached their fiduciary duty by failing to prudently select fund service providers, including consultants and fund investment managers; ignoring required procedures included in the fund’s governing plan documents; creating conflicts of interest for the fund; unlawfully soliciting and accepting gratuities from plan service providers; and spending and permitting others to spend fund assets lavishly on unnecessary trips, parties and extravagant food, wine, and accommodations.

[…]

The DOL’s lawsuit seeks a court order requiring the defendants to restore any losses suffered by the fund due to the alleged violations and requiring the fund to implement reforms to prevent future ERISA violations.

“This case clearly shows how the fund and its trustees shirked fiduciary responsibilities to the detriment of pension fund participants,” Michael Schloss, acting director of EBSA’s Philadelphia region, said in a statement. He added, “The department will not tolerate when fiduciaries fall short of their legal obligations, and will take every necessary action to hold them accountable.”

The plan is 101 percent funded and manages nearly $11 billion in assets.

Share This Post

Recent Articles

Leave a Reply

Privacy Policy | © 2017 Pension360 and © 2014 Policy Data Institute | Site Admin · Entries RSS ·