US - The former CEO of USA Mining Inc has been instructed by a federal district court to restore almost US$5m to the pension plans of Standard Coosa Thatcher (SCT) Yarns Inc.
The $5m is to repay improper loans, transfers and investments defendant Dan Geiger urged the SCT Yarns plans to make in companies in which he owned an interest.
Geiger and affiliated corporate defendants have also been permanently barred from providing services or servicing in a fiduciary capacity to plans governed by the Employee Retirement Income Security Act (ERISA) in the future.
Said secretary of labor Elaine Chao: “Workers counted on these pension plans and the Department [of Labor] is pursuing every legal avenue to recover the stolen funds.”
Geiger was sued by the US Labor Department in 2004 for his criminal activities involving the plans between 1999 and 2001. He is currently serving 108 months in a California federal prison.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.