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Prepared by Mike Ewing, J.D.
Director of Research
United Actuarial Services, Inc.
(317) 580-8659
Fax (317) 580-8651
email: mewing@unitedactuarial.com
© United Actuarial Services, Inc. 2009
2009-13
February 10, 2009
DOL Releases Guidance on Duties of Plan Fiduciaries of
Employee Benefit Plans in Wake of Bernard L. Madoff
Investment Securities LLC $50 Billion Ponzi Scheme
The Department of Labor
(DOL)
announced guidance on the duties of employee
benefit plan fiduciaries (Trustees in multiemployer plans) in light of alleged abuses
involving Bernard L. Madoff Investment Securities LLC. According to the DOL press
release, the DOL is providing guidance to fiduciaries, investment managers and
other investment service providers to plans who believe they may have exposure to
losses on investments with entities related to the Madoff firm. The guidance
provides steps to assess and protect the interests of plans, participants and
beneficiaries under the Employee Retirement Income Security Act (ERISA).
Quick action is needed
as according to a press release by the Madoff
bankruptcy trustee, customer claims
must be filed by
March 4, 2009
and
general creditor claims
must be filed by July 2, 2009. Affected plans may
have already received a claim form. Claim forms and information are available at:
For more information, see the Madoff bankruptcy trustee press release at:
Madoff ran what was probably the largest Ponzi scheme in history with losses to
investors projected to be as high as $50 BILLION. Background on the Madoff
scheme can be found by searching the internet. The following link to an article in
the New York Times details some of the disaster:
According to some published reports, at least a half-dozen construction unions,
including locals of the International Brotherhood of Electrical Workers
and the
Plumbers & Steamfitters union, had entrusted pension funds and health care money
to Mr. Madoff.
The roster also includes
locals representing roofers, carpenters and
laborers, mostly in upstate New York.
CLIENT BULLETIN