A prominent industrial union denounced federal officials Tuesday for targeting its pension fund in a lawsuit over alleged misuse of financial resources.
Federal agencies have been incredibly friendly toward the labor movement under President Barack Obama. The International Association of Machinists (IAM), however, is in the spotlight over accusations its pension fund it being use inappropriately. The Department of Labor (DOL) filed its lawsuit Jan. 24 alleging multiple violations of the Employee Retirement Income Security Act.
“IAM National Pension Fund is among the nation’s most stable and best managed multi-employer plans,” the union declared in a statement. “[It’s] in full compliance with all DOL rules and regulations. The complaint makes no allegations that relate to the stability of the Fund.”
The union urged the department to withdrawn the lawsuit before the reputation of the fund is tarnished. It adds that withdrawing the challenge will also help to avoid costly litigation. The IAM and its pension fund are technically two separate entities and thus the union was not named as a party in the lawsuit.
“An investigation by the U.S. Labor Department’s Employee Benefits Security Administration found that the IAM National Pension Fund trustees breached their fiduciary duties,” the department detailed. “Spending and permitting others to spend fund assets lavishly on unnecessary trips, parties and extravagant food, wine, and accommodations.”
The lawsuit also alleges a long list of procedural problems as well as unlawful solicitation of gratuities. The lawsuit was filed with the federal district court in Washington D.C.
The DOL did not immediately respond to The Daily Caller News Foundation’s request for comment.
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.