Union ordered to repay $24,000 to fund

The trustees of the International Brotherhood of Electrical Workers Local Union 99 Health and Welfare fund have been ordered by the U.S. District Court in Rhode Island to repay $24,000 to the fund to cover improper benefit programs they allowed it to make.

The order is the result of a lawsuit filed by the U.S. Department of Labor May 31, 2001. It charged board of trustee members with violating the Employee Retirement Income Security Act (ERISA), which protects private employees pension and welfare benefits.

Eligible employees of the plan worked for employer who had collective bargaining agreements with IBEW Local Union 99. The suit alleged that between January 1994 and December 31, 1995, the trustees failed to adequately review, monitor and ensure the accuracy of employee eligibility information that they provided to Provident Life and Accident Insurance Company, which received and processed claims for the plan.

The consent judgement, signed January 8 required the defendants to repay the plan and also bars them from committing similar infractions in the future.

- Advertisement -

No posts to display