Following an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), trustees for the United Employee Benefit Fund (UEBF) in Northbrook have agreed to correct $1.7 million in improper loans made from the union retirement fund.
EBSA investigators discovered 194 improper loans were made over the course of three years from January 2007 to December 2009. They allege the fund’s trustees made loans without collateral and never attempted to collect the loans when they became delinquent. Additionally, they failed to report the delinquent balances as taxable income.
Under the settlement, employees who took loans must either repay them or report them as income. All future loans will be made on an emergency basis only, and plan participant must be able to document the emergency.
The UEBF was established by the Professional Workers Master Contract Group and the National Production Workers Union Local 707.
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