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The U. S. Department of Labor has obtained a
consent order requiring the Seafarers International Union of Puerto Rico, the
Carribbean and Latin America to repay $374,729, plus interest, to its welfare
plan as repayment for improperly retained employer contributions owed to the
welfare plan.
According to a lawsuit filed simultaneously with
the order, the union failed to forward to the welfare plan contributions paid
by employers over the period 1976 to March 1997. The union allegedly retained
the money for its own uses.
The welfare plan provides health and other
benefits to eligible participants. As of Dec. 31, 1995, there were 646 eligible
participants and the welfare plan had net assets of $249,965.
The lawsuit and consent order were filed on Oct.
15 in federal district court in Hato Rey, Puerto Rico. The order was entered on
Oct. 22. This case resulted from an investigation conducted by the Miami
District Office of the Atlanta Region of the department’s Pension and
Welfare Benefits Administration into alleged violations of the Employee
Retirement Income Security Act.
(Herman v. Seafarers International Union of Puerto
Rico, the Carribbean and Latin America)
Civil Action No. 99-2164 |
