U.S. Labor Department Obtains $700,000 Restoration to Michigan Plumbers and Pipefitters Pension Fund

Archived News Release — Caution: Information may be out of date.

CHICAGO - The U.S. Department of Labor has recovered $700,000 in pension funds for the Upper Peninsula Plumbers and Pipefitters Pension Fund in Lansing, Mich. The funds are restitution for imprudently investing pension assets in the Aspen Bay Pulp & Fibre LLC, a company formed to provide working capital for the proposed development of the Aspen Bay Pulp Mill project in Menominee, Mich. The department also may assess a civil money penalty under the Employee Retirement Income Security Act (ERISA).

"This is great news for the workers and retirees who depend upon this pension fund," said U.S. Secretary of Labor Elaine L. Chao. "Seeking this order is part of the Department's aggressive benefit protection campaign, which last year recovered over $3 billion in retirement, 401(k), health and other programs for workers and their families."

The lawsuit, filed in federal district court in Michigan, alleges that trustee Jerome Hedstrom violated the ERISA when he failed to investigate the merits of the Aspen Bay Pulp Mill investment before committing pension assets to the project. The pension plan covered more than 800 union members in Menominee, Marquette and Escanaba.

The Cincinnati regional office of the Labor Department's Employee Benefits Security Administration (EBSA) investigated the case. Employers and workers can reach the Cincinnati regional office at (859) 578-4680 or through EBSA's toll-free number, 1-866-444-EBSA (3272), for help with problems relating to private-sector retirement and health plans.

Chao v. Hedstrom
Civil Action No. 1:05-cv-523

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

Archived News Release — Caution: Information may be out of date.