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August 28, 2008 at 10:45 AM
The U.S. Department of Labor has reached a settlement with a Pennsylvania trade group providing for $5 million in restitution for alleged breaches of fiduciary duties to the group’s health plans.
The DOL announced it has obtained a consent judgment in which the Pennsylvania Builders Association, a subsidiary and its trustees agreed to restore $5 million to the fund and pay a civil penalty of $500,000.
The judgment also permanently bars the trustees from using plan assets to pay royalties or licensing fees to the association, prevents the trustees from contracting with the subsidiary for administrative services in exchange for fees, and prohibits the use of trust assets for lobbying, the DOL says.
Trustees of the PBA, Lemoyne, Pa., also must receive 8 hours of fiduciary training annually over the next 5 years under terms of the agreement, the DOL says.
