Labor Department has agreed to a $3 million settlement of three related lawsuits with trustees of three New York non-contributory multiemployer pension funds. Trustees Sam Marchio, Gerald Spiridilozzi, Carmen Nicotera, Richard Alexander, Jack Endryck and Tony Korrie agreed to repay $930,000 total to the Laborers Local 35 pension fund, Utica, N.Y. At the same time, trustees Carl Spatol, Edward Morgan, Richard Buck and Harold McElwain agreed to repay a total of $960,000 to the Carpenters Local 120 pension fund, Utica, N.Y.; and trustees John Agati, Sam Agati, Robert Ashley, Lanny Miller, Fred Rexford and Hugh Schickel agreed to repay a total of $1.1 million to the Laborers Local 322 pension fund, Massena, N.Y. Additionally, the trustees of the three pension funds also agreed to pay a total of $600,000 in fines to the Labor Department for violating federal pension law, and to give full discretion to the funds investment managers to manage all the assets. The Labor Departments lawsuits alleged the trustees violated their fiduciary duties when they made their pension plans buy a class of collateralized mortgage obligations and real estate mortgage investment conduit bonds, generally known as Z-bonds. Trustees of all three plans used the same broker dealer to make the purchases. By the end of 1994, each plan held a large amount of these securities, which the plans eventually sold at a significant loss. The lawsuits alleged that the purchases were imprudent because the trustees did not understand the investments and the risks of purchasing them, and did not monitor these investments. The lawsuits also claimed the trustees did not properly investigate the bonds, or consider how the bonds would fit in relative to the plans funding objectives.