Trustees of Local 401 of the Philadelphia International Association of Bridge, Structural and Ornamental Iron Workers Annuity Fund have agreed to repay $456,665 to the fund as part of a settlement with the Labor Department. The plans trustees allegedly paid a salary to the plans administrator, Joseph Dougherty, who was already a full-time employee of the union. The Labor Departments lawsuit also charged the trustees with violating federal pension law by failing to properly oversee participant loans.
As part of the settlement, Mr. Dougherty was ordered to pay $40,000 of the settlement from his own account in the plan, and the trustees agreed to pay a total penalty of $83,333 for breaching federal pension law. Mr. Dougherty also agreed to pay a penalty of $8,000. The plan had $66.7 million in assets at the end of 1998, the most recent date for which data are available.