Date of Action: Jan. 24, 2016
Type of Action: U.S. Department of Labor filed a lawsuit against the International Association of Machinists National Pension Fund and its board of trustees for multiple violations of the Employee Retirement Income Security Act.
Name(s) of Defendant(s): IAM National Pension Fund; fund trustees: Robert Roach, Warren Mart, Burton Trebour, Alfred Nelson, Lynn Tucker, Philip Gruber, Gary Allen, Robert Martinez Jr. and Thomas Connery
Allegations: An investigation by the U.S. Labor Department’s Employee Benefits Security Administration found that the IAM National Pension Fund trustees breached their fiduciary duties by:
- Failing to loyally and prudently select fund service providers, including consultants and fund investment managers;
- Regularly 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.
Resolution: The lawsuit is seeking 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.
Information: Employers and workers can reach EBSA’s Washington District Office at 202-693-8700 or toll-free at 866-444-3272 for help with problems relating to private-sector retirement and health plans.
Court: United States District Court for the District of Columbia
Docket Number: 1:16-cv-00120