Compliance August 20, 2013

Trustees to Repay Union Benefit Funds

August 20, 2013 (PLANSPONSOR.com) – The trustees of union benefit funds have begun a process of repayment to the funds after a recent judgment against them.
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The trustees of the pension plan, annuity fund and vacation fund of Exhibition Employees Local 829 of the International Association of Theatrical Stage Employees in New York repaid a total of $2,256,817, with an additional $50,000 scheduled to be paid, to the funds following a consent judgment, which came after a U.S. Department of Labor (DOL) investigation revealed numerous violations of the Employee Retirement Income Security Act (ERISA). The trustees have also agreed to make additional payments and forfeitures of their own annuity plan accounts, resign and take other corrective action.

The DOL filed the lawsuit, Harris v. McNamee, et al (Civil Action Number: 12-CV-1511), in February 2012 in the U.S. District Court for the Southern District of New York. The suit alleged numerous ERISA violations, which include the improper transfer of assets from the Local 829 pension plan to the union’s annuity, vacation, hiring hall and general funds as well as the improper transfer of at least $240,000 from the pension plan and annuity fund to service providers.

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Under the consent judgment, the trustee defendants have repaid $1,975,209 to the pension plan, $219,467 to the annuity fund and $112,141 to the vacation fund. They have also placed $268,181.82 in an escrow fund to pay civil money penalties.

Additionally, defendants Kevin Dunphy, Manuel Farina, John T. Hall, Michele Sullivan and John Walsh forfeited up to $325,000 of their annuity fund balances. The defendants also agreed to resign as trustees and to be permanently barred from serving in a fiduciary or service provider capacity for these or any other ERISA-covered benefit plans.

Products August 20, 2013

Newport Group Re-Launches Participant Website

August 20, 2013 (PLANSPONSOR.com) - The Newport Group released the all-new plandestination.com.
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The site, which allows participants in Newport-administered retirement plans to manage their retirement and executive benefit accounts, has been completely re-envisioned in terms of both the user experience and the technology which supports it.

The site’s modern design emphasizes ease of use and highlights information and action, with financial data rendered visually to enhance understanding. Intuitive and intelligent navigation, personalized to the user, puts all account details within easy reach.

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Participants can quickly see a snapshot of their financial progress and view their performance in the context of their plan. The site is optimized for use on tablets and smartphones, which means users can access their retirement and benefit account details anywhere.

In addition, the site’s design allows for alternate color choices by companies sponsoring a Newport-administered plan, to help better align the experience with their individual brands.

The technology platform supporting the site has been redesigned as well, so it can accommodate and incorporate new technology and security features as they are developed. This will allow Newport to adapt the site to future changes in financial services technology and customer expectations.

“This new site will help participants in Newport plans to better understand their entire financial picture, both the big picture and the details, and to stay on track to meet their goals. This will in turn help meet the plan sponsor goal of participants becoming more engaged in their benefit plan. The site itself is designed to focus on outcomes—specifically employees being able to make informed decisions and plan for the long term,” said Bryant Kirk, Newport chief operating officer.

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