"HK" wrote in message
...
It takes a lot more education, training, and skill to become a steamfitter
than it does to become a college graduate.
If they're so smart why do they continue to let people like Ullico handle
their money?
http://www.earthtimes.org/articles/s...e,226126.shtml
WASHINGTON, Nov. 16
PRNewswire-USNewswire/ -- The U.S. Department of Labor
today announced a settlement requiring Union Labor Life Insurance Co.
(ULLICO) of Washington, D.C., to pay back nearly $16.7 million in fees and
compensation to benefit plans that invested in Separate Account J (J for
Jobs), a pooled separate account holding plan assets for the benefit of
employee benefit plan investors. In addition, the insurer must pay $3.3
million to an escrow account to cover additional civil penalties and excise
taxes resulting from alleged violations of federal employee benefits law.
"Self-dealing by pension fiduciaries at the expense of workers' retirement
plans cannot be tolerated," said Secretary of Labor Elaine L. Chao. "This
$20 million settlement is a loud and clear message to all plan fiduciaries
that they will be held accountable when their actions are detrimental to
workers' benefit plans."
The settlement, if approved by the court, successfully resolves a department
investigation concluding that Union Labor Life had used its authority over
the separate account to unilaterally set its own compensation in violation
of the Employee Retirement Income Security Act (ERISA).
In addition to the monetary recovery, the settlement permanently bars Union
Labor Life from retaining compensation from any source in connection with
Separate Account J without advance disclosure of the compensation and
approval by appropriate independent plan fiduciaries. The order broadly
prohibits the insurer from exercising any unilateral discretionary authority
over the compensation it receives as a fiduciary or service provider to
ERISA-covered benefit plans.
The Labor Department filed the lawsuit simultaneously with the settlement,
which is subject to court approval. The lawsuit alleges that Union Labor
Life violated ERISA when it failed to properly disclose its compensation and
receive approval from plan fiduciaries independent of Union Labor Life for
funds taken directly from the investment account, as well as payments
received from third-party borrowers, such as loan commitment fees,
construction administration fees and lender inspection fees. The insurer
allegedly kept, among other fees, millions of dollars from loan applicants
who failed to go forward with loans even though the plans assumed virtually
all the risk of funding those loans.
Separate Account J invests in secured mortgages on real estate development
projects constructed with union labor. The sole investors are ERISA-covered
plans.
The Labor Department's legal action resulted from a comprehensive
investigation conducted by the Philadelphia Regional Office of the
department's Employee Benefits Security Administration and the department's
Office of the Solicitor.
Chao v. ULLICO
Civil Action Number 1:07-cv-02089
U.S. Department of Labor releases are accessible on the Internet at
http://www.dol.gov/. The information in this news release will be made
available in alternate format (large print, Braille, audio tape or disc)
from the COAST office upon request. Please specify which news release when
placing your request at 202-693-7828 or TTY 202-693-7755. The Labor
Department is committed to providing America's employers and employees with
easy access to understandable information on how to comply with its laws and
regulations. For more information, please visit
http://www.dol.gov/compliance.
U.S. Department of Labor