ULLICO to Pay $20M to Settle Self-Dealing Charges by
DoL
November 16, 2007 (PLANSPONSOR.com) - The U.S.
Department of Labor announced a settlement requiring Union
Labor Life Insurance Co. (ULLICO) of Washington, D.C., to pay
back nearly $16.7 million in fees and compensation to benefit
plans that invested in a pooled separate account holding plan
assets for the benefit of employee benefit plan
investors.
In addition, the announcement said, ULLICO must pay
$3.3 million to an escrow account to cover additional
civil penalties and excise taxes resulting from alleged
violations of federal employee benefits law.
The settlement, subject to court approval, will
resolve a department investigation that
found ULLICO had used its authority over Separate
Account J to unilaterally set its own compensation in
violation of the Employee Retirement Income Security Act
(ERISA). Separate Account J invests in secured mortgages on
real estate development projects constructed with union
labor.
The sole investors are ERISA-covered plans.
The settlement also permanently bars Union Labor
Life from retaining compensation from any source in
connection with Separate Account J without advance
disclosure of the compensation and approval by
appropriate independent plan fiduciaries. The order
broadly prohibits the company from exercising any
unilateral discretionary authority over the compensation
it receives as a fiduciary or service provider to
ERISA-covered benefit plans.
The Labor Department lawsuit, filed simultaneously
with the settlement, alleges that ULLICO violated ERISA
when it failed to properly disclose its compensation and
receive approval from plan fiduciaries independent of Union
Labor Life for funds taken directly from the investment
account, as well as payments received from third-party
borrowers, such as loan commitment fees, construction
administration fees, and lender inspection fees.
The insurer allegedly kept, among other fees,
millions of dollars from loan applicants who failed to go
forward with loans even though the plans assumed
virtually all the risk of funding those loans.
In a statement, ULLICO said the DOL did not allege
that it collected unreasonable or excessive fees, but
complained that even reasonable fees can violate ERISA if
they are not adequately disclosed to
investors. “This settlement is about a
good faith disagreement over whether legitimate,
reasonable and customary fees were sufficiently
disclosed. We think they were; the Department
disagreed,” said President and CEO Mark Singleton,
in the statement.
The company said it agreed to the settlement
“to avoid lengthy, expensive litigation, and to
eliminate any ambiguity about whether the company’s
reasonable compensation arrangements were adequately and
consistently disclosed under ERISA.” ULLICO did
not admit that any of the compensation arrangements
examined by the DOL were unlawful or that the company has
acted in any way in violation of law, the statement
said.
November 15, 2007 (PLANSPONSOR.com) - A week from
today, most of us (at least most of us still at our posts)
will no doubt be wondering what time we can get on our way
for the Thanksgiving holiday.
This week I asked readers if your workplace would be
open the day after (a.k.a. “Black Friday).
Most (56.3%) said their workplace would NOT be open that
day, and roughly one in five said that they would be open –
“but with a skeleton crew.”
The rest, of course, simply said “yes”, though there were
some in the “other” category, including the reader who
said,
” This is a Canadian response – we had out Thanksgiving
already in October, thank you.”
As for what readers would be doing –
9%
said they would be in the office,
9.5%
said they would be at work – for awhile, anyway, and
another
5%
said they would be at work – at least physically.
Still, that means that roughly
14%
would be resting,
11%
plan to be shopping,
4%
will be traveling, nearly
11%
will be visiting – and about
15%
will be doing “more than one of the above.”
Significantly, about one-in-five chose “other” – which
ran the gamut of tasks from “entertaining others that have
traveled, shopping online, eating, cleaning house,
decorating the house, watching football, going to the
ballet, putting up the Christmas tree/decorations, watching
the kids participate in some kind of sporting event,
nursing a hangover, and
“…chasing my kids (school and daycare are closed,
too).”
One said simply that they would be doing
“Everything above that does not encompass work.”
Office Policies
A number of readers are “victims” of the stock market in
such things.
As one reader noted,
“If the market’s open, we’re open.”
Or, as another noted,
“Our firm’s motto is “We are open when the
market is open and we are open when the market is
closed.” I don’t find that to be a very
entertaining even though I’m supposed to say it with a
smile.”
Or, as another said,
“Sadly, we must be here in case some misguided
individual wants to make a trade on a day that should be
reserved for leisure and leftovers.”
There are, of course, beneficiaries of the traffic at
the shopping “mauls.”
As one reader noted,
“We are a retailer. Our Home Office will be closed, but
our 1,000 plus stores will be living the nightmare that is
working in a retail store the day after Thanksgiving.”
Another said simply,
“We are in RETAIL – the day after Thanksgiving is known
in our company as “Green Day”.
“It is wonderful to work for a company that gives us
both days off. In the past I worked for companies that were
open that day and nothing got done anyway and no one wanted
to be there. It makes more sense to me to close and at
least benefit from the good-will it generates,”
noted one.
Official status notwithstanding,
“We’re officially closed, but I know some freaks
that will come to work,”
noted one.
Another said,
“We are officially closed, but I expect to get a call
from my boss bright and early on Friday wondering why
I’m not in the office.”
Another observed,
“I used to be able to release my team early on the day
before a holiday. However, since taking a state job, doing
so would mean they all falsified their time sheets.”
One reader bemoaned the reality that
“Yes, they took away the day after Thanksgiving by
claiming that our clients are at work that day. Wrong! Most
of them have the day off!”
One who had the day off said,
“I wish my workplace were open though – my in-laws are
coming.”
But this week’s
Editor’s Choice
goes to the reader who said,
“It will be dead, but we’ll be open since the market
is open. For excitement that day we’ll be doing an
office pool on the number of phone calls received.”
Thanks to
everyone who participated in our survey!
We are officially
open, but as the day after Thanksgiving is an
'optional' floating holiday, most people
try to take it. If the stock markets would only
close on that day, we could ALL take the day
off!
if the market's
open, we're open.
As a custodian--and
transaction processor--when the stock market is
open, we are open.
We will also close
at 3pm on Wednesday
Happy Thanksgiving
everyone!
I used to be able to
release my team early on the day before a holiday.
However, since taking a state job, doing so would
mean they all falsified their time sheets.
While it is a
'work site' holiday, we MUST use one of our
floating holidays. The company giveth and the
company taketh away ...
We follow the stock
market, so will close at 2:00
But I'll be in
for a few hours just to catch up on a filing pile
that is threatening to collapse any moment.
Our firm's motto
is "We are open when the market is open and we
are open when the market is closed." I
don't find that to be a very entertaining even
though i'm supposed to say it with a
smile.
Thanksgiving week is
infamous at my company for being the week of
silence, where you can catch up on all of those
projects that have been sitting on your desk for
the past several months.
We are in RETAIL -
the day after Thanksgiving is known in our company
as "Green Day".
We shut down for the
entire week of Thanksgiving.
As a recently
"acquired" employee from a Bank. This
will be the first year in over 20 that taking off
Friday is not costing me vacation time.
I have been working
in the banking industry for 15 years and we have
always been open the day after Thanksgiving. We are
also open on most Federal holidays. Ironically, no
business gets done because the general population
believes that banks are always closed on Federal
holidays!
Government worker.
'Nuff said.
It is wonderful to
work for a company that gives us both days off. In
the past I worked for companies that were open that
day and nothing got done anyway and no one wanted
to be there. It makes more sense to me to close and
at least benefit from the good-will it
generates.
We're an
investment manager, so we have to be open when the
markets are.
The Government is
too cheap to close the day after. Few will be in,
no real work will get done, but, we will be
open.
We're required
to be open the day after Thanksgiving but it's
an extremely quiet day. I have found it's a
great day to catch up on the piles of work that
have built up on my desk. Plus it gives me an
excellent excuse to avoid the craziness of Black
Friday shopping. The rudeness in that one day makes
me doubt the basic kindness of people.
We're officially
closed, but I know some freaks that will come to
work.
We get to leave
early too..the ones that will be working.
close down at 2:00
on Wednesday too!
We are officially
closed, but I expect to get a call from my boss
bright and early on Friday wondering why I'm
not in the office.
We get nine holiday
days a year. Six of them are used in the six weeks
beginning with Thanksgiving and the day after,
Christmas Eve and Christmas, Newyears Eve and New
Years.
My company gives the
day after Thanksgiving as a holiday every
year.
We will not be
working the day after Thanksgiving. There
aren't enough trucks to tow in so many
gluttonous hogs at once!
We also close at 3pm
on Wednesday!
Every year the same
debate about why the office should be open when no
one else in the U.S. is working. So, those that
have to show up are the ones with lowest years of
service. No one is expecting alot of production on
that day. In fact, they have "left over"
potluck lunch that start around 11:00.
It's one of the
few Holidays we get.
Sadly, we must be
here in case some misguided individual wants to
make a trade on a day that should be reserved for
leisure and leftovers.
We are a retailer.
Our Home Office will be closed, but our 1,000 plus
stores will be living the nightmare that is working
in a retail store the day after
Thanksgiving.
While we won't
get to leave early on Wednesday, we do have Friday
off.
The company was
originally scheduled to be open. However, as part
of this years United Way campaign, if the Company
as a whole increased our contribution from last
year's contribution, then we would get Friday
off as a holiday. The goal was met and now the
office will be closed on Friday.
This is a
"floating" holiday for us. We can take
black Friday or we can take another day. Nothing
gets done anyway, everyone is still reacting to the
tryptophan in their turkey!
I remember in
the good ole days, if I were in town,
I'd go ahead and work the Friday after
Thanksgiving. Why? Well, (1) there was no one else
there, so you could come in at a leisurely hour,
like 10 AM. Then you could take a two hour lunch.
And then you could leave at 2. There might be 1
manager on duty who'd send everyone home early.
Same applied to Wednesday before Thanksgiving. Of
course, now that I am with ACME, and will soon be
working from home full-time, no one pings you on
SameTime to tell you to stop working early the day
before a holiday. So you just have to shut it down
on your own and enjoy life. I don't know why
people think because you work at home, you must be
available 100% of the time.
Hope you and your
family have a nice Thanksgiving.
After all the
fat-ladden gorging of Thanksgiving Day and
high-stress, early morning shopping thereafter,
utilization of emergent cardiac services is usually
quite high on "Black Friday".
And our office
closes at 1:00 CT on the Wednesday before
TG.
Yes, they took away
the day after Thanksgiving by claiming that our
clients are at work that day. Wrong! Most of them
have the day off!
The day is not an
official holiday but better than 50% of the staff
take off. Not really an issue though as our
customers tend to not be in either.
And I am hoping that
no further healthcare annual enrollment
"surprises" or new, end of plan year,
required federal regulatory employee disclosures
occur between now and then, so I don't have to
come in to help put out the latest
"fire".
I work for a
subsidary of a BANK...there is no holiday the day
after Thanksgiving for banks. However, I will use
vacation and all of my staff will use vacation for
that day.
I wish my workplace
were open though - my in-laws are coming. Maybe
this is the year I start a new tradition of hitting
the stores at 5am (by myself)!
We don't get
Veterans Day to be able to have a two-day holiday
at Thanksgiving
It will be dead, but
we'll be open since the market is open. For
excitement that day we'll be doing an office
pool on the number of phone calls received.
I will be standing
in one of those extreme early sale lines. My son is
working on a game room at our church for his Boy
Scout Eagle project. His project is estimated to
cost $2,800 so we are hoping to save money by
getting an early bird special on a foosball table.
Any dollar we can save is one less dollar he (and
we) have to do fund raising for.
I'm going to
work off that Thanksgiving dinner by diving with
the Manatees! I can't wait!!!
AT my local casino
pretending that loosing money is
'fun'.
At home cleaning
up!
Shopping on line,
relaxing, and maybe a VERY brief outing to the
mall.
Dishes from the day
before and then a Shrek marathon with my
kid.
Entertaining family
members who are visiting for the looooooong
weekend.
Cleaning house,
after sleeping. Traditionally I have to travel to
family so I'm looking forward to a holiday at
home, even if I have to use part of the 4 days to
clean.
Eating
Working around the
house -- we have been remodeling.
My parents are
coming to stay for 10 days so I will be spending
quality time with them.
Visiting with my
family and avoiding retail mania by going to a
museum.
Decorating the house
for Christmas
More than one of the
above including dragging my carcass around the
doggie park with my wards. Neither rain, wind,
sleet, snow, etc. can keep me from our appointed
rounds of marking bushes, digging up vole burrows,
and chasing the wabbits through their vineyard
haunts.
At the Moscow
Ballet's production of "The
Nutcracker" (in Cincinnati OH)
My husband is going
backpacking. Not realizing that my take on the
situation is that I get to do what I want that
day.... His bribe to keep me from being upset with
him for leaving me .... is having a masseuse come
to the house to give me a one hour massage. Yes,
Nevin, I realize that I am spoiled.
Watching the #1
ranked LSU Tigers feast on pig! (Arkansas)
The mind may
occasionally travel to work, but the body will be
at home with family, having hopefully digested
enough of the previous day's activities to eat
even more.
Working from home
for a while and shopping
Working from home
early, then watching my daughter play in a USTA
tennis tournament -- if she wins Friday, we go back
Saturday, if she wins Saturday, we go back Sunday.
If she loses, I'll be cooking a second
Thanksgiving for family we won't see Thursday.
At least I won't be shopping!
Absolutely enjoying
the quiet...perhaps even shrinking a pile or two on
my desk!
Putting up my
Christmas tree!
drinking...to get
through the shopping
My family will be
having Thanksgiving on Friday to accommodate in-law
family plans for their Thansksgiving on
Thursday.
I will start my day
by sleeping since the rest of my family is retail
and has to be to work by 6:00 AM. Then I will get
caught up on all that housekeeping that just
doesn't stay done! Maybe by mid-afternoon I can
then rest.
Hiding in my house.
Not venturing out into the black friday gridlock
that will overwhelm the Denver metro area, making
normal rush hour during a blizzard appear to be
attainment of Indy 500 speeds.
Studying for an
ASPPA exam.
At home decorating
for Christmas
At work (for a
while, anyway)
Starting a home
improvement project, installing hardwood floors in
my condo.
OUTSIDE IN THE YARD.
CLOSING UP FOR WINTER. HITTING THE LAST BUCKET OF
BALLS FOR THE YEAR. SHOPPING IF THE GIRLS WANT TO.
TAKING THAT POST TURKEY AFTERNOON NAP
(AGAIN)
Nursing a
hangover.
Attending my
son's two youth hockey tournament games.
Officially, I'm
on PTO but god forbid if I dont check my Treo while
away. Unofficially, I'll likely have what I
call 'turkey hangover' on Friday.
We are going to Walt
Disney World!!
I usually try to
work Black Friday because I'd rather take a
beating than go to a mall on that day. This year I
have a family obligation (eldersitting) so I am
asking for the day off.
Hopefully, visiting
relatives, eating unhealthy amounts of leftovers
and getting outside to play some golf...
We will be cleaning
the house and going to the movies.
making turkey
soup
I will be returning
from my parents' house bright and early on
Friday because my husband has an art show that he
needs to sit at for the weekend. So, we rush home
so I can be home alone all weekend. I guess
I'll have to work on my paper for
school.
Everything above
that does not encompass work
Putting up Christmas
decorations.
At home chasing my
kids (school and daycare are closed, too).