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CHICAGO - The U.S. Department of Labor has
recovered $700,000 in pension funds for the Upper Peninsula Plumbers and
Pipefitters Pension Fund in Lansing, Mich. The funds are restitution for
imprudently investing pension assets in the Aspen Bay Pulp & Fibre LLC, a
company formed to provide working capital for the proposed development of the
Aspen Bay Pulp Mill project in Menominee, Mich. The department also may assess
a civil money penalty under the Employee Retirement Income Security Act
(ERISA).
"This is great news for the workers and retirees
who depend upon this pension fund," said U.S. Secretary of Labor Elaine L.
Chao. "Seeking this order is part of the Department's aggressive benefit
protection campaign, which last year recovered over $3 billion in retirement,
401(k), health and other programs for workers and their families."
The lawsuit, filed in federal district court in
Michigan, alleges that trustee Jerome Hedstrom violated the ERISA when he
failed to investigate the merits of the Aspen Bay Pulp Mill investment before
committing pension assets to the project. The pension plan covered more than
800 union members in Menominee, Marquette and Escanaba.
The Cincinnati regional office of the Labor
Department's Employee Benefits Security Administration (EBSA) investigated the
case. Employers and workers can reach the Cincinnati regional office at (859)
578-4680 or through EBSA's toll-free number, 1-866-444-EBSA (3272), for help
with problems relating to private-sector retirement and health plans.
Chao v. Hedstrom
Civil Action No.
1:05-cv-523 |
