Welfare Fund Committed Prohibited Transaction, New York Federal Judge Rules

Welfare Fund Committed Prohibited Transaction, New York Federal Judge Rules

NEW YORK - A multiemployer welfare benefit plan did not violate the Employee Retirement Income Security Act by requiring retirees to pay a monthly premium pursuant to an arbitrator's ruling, but it did commit a prohibited transaction by deducting dues from union members' vacation benefits and forwarding them to the union, a federal judge in New York ruled July 1 (Patrick Enright, et al. v. New York City District Council of Carpenters Welfare Fund, et al., No. 12 Civ. 4181, S.D. N.Y.; 2013 U.S. Dist. LEXIS 92209).

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