Bank of America has agreed to pay $4 million to two pension plans at Norcal Waste Systems Inc., San Francisco, as part of a settlement with the Department of Labor. The settlement allows Bank of America to continue as fiduciary to other ERISA plans, even though the original lawsuit sought to ban the bank.
The payment will restore all losses by Norcal's pension plans in connection with their investment in Techno-Therm Inc.
According to its original lawsuit, the Labor Department said the bank, acting as the plans' trustee, allegedly lost $3.3 million in investing plan assets in Techno-Therm.
