Skip to main content

Investigation To Reform Teamsters' Central States Pension Fund Found Inadequate

HRD-82-13 Published: Apr 28, 1982. Publicly Released: Jun 03, 1982.
Jump To:
Skip to Highlights

Highlights

For many years, the Teamster's Pension Fund trustees have been the subject of allegations of misuse of the Fund's assets. Therefore, the Department of Labor initiated an investigation of the Fund and, in response to a congressional request, GAO reviewed the Government's investigation.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Internal Revenue Service The Commissioner of Internal Revenue should direct IRS officials to closely monitor the Fund's financial operations to ascertain that the Fund meets the minimum funding standards of the Employee Retirement Income Security Act in 1981 and in the future and, if not, take whatever action is needed to ensure that the Fund meets the Act's requirements.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor and the Commissioner of Internal Revenue should direct their investigative staffs to review the trustees' management and use of the benefits and administration account to determine the appropriate reserve the Fund should maintain in the account.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor and the Commissioner of Internal Revenue should direct their investigative staffs to review the trustees' management and use of the benefits and administration account to determine the appropriate reserve the Fund should maintain in the account.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor and the Commissioner of Internal Revenue should direct their respective investigative staffs to more closely cooperate to prevent coordination problems, duplication between investigators, and giving the Fund an excuse not to cooperate because the Government is not speaking with one voice.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor and the Commissioner of Internal Revenue should direct their respective investigative staffs to more closely cooperate to prevent coordination problems, duplication between investigators, and giving the Fund an excuse not to cooperate because the Government is not speaking with one voice.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should take action to require that the proposed reorganization and any other reforms imposed on the Fund be included in a formal written, enforceable agreement signed and agreed to by Labor, IRS, and the Fund's trustees.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should take action to require that the proposed reorganization and any other reforms imposed on the Fund be included in a formal written, enforceable agreement signed and agreed to by Labor, IRS, and the Fund's trustees.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should obtain further written enforceable commitment from the trustees to reorganize the way the Fund handles and controls the employer contributions and its other moneys to remove the trustees' control over any of these funds. The proposed reorganization should provide for: (1) the Fund to employ a financial custodian; (2) IRS and Labor to have a veto power over the selection of the investment manager and financial custodian, if the trustees' selections do not meet the Government's qualifications; and (3) limiting the trustees' roles and responsibilities to establishing overall investment objectives, determining eligibility requirements for pension benefits and employers' contributions, monitoring the investment manager's and the custodian's activities, and administering relevant collective-bargaining requirements.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should obtain further written enforceable commitment from the trustees to reorganize the way the Fund handles and controls the employer contributions and its other moneys to remove the trustees' control over any of these funds. The proposed reorganization should provide for: (1) the Fund to employ a financial custodian; (2) IRS and Labor to have a veto power over the selection of the investment manager and financial custodian, if the trustees' selections do not meet the Government's qualifications; and (3) limiting the trustees' roles and responsibilities to establishing overall investment objectives, determining eligibility requirements for pension benefits and employers' contributions, monitoring the investment manager's and the custodian's activities, and administering relevant collective-bargaining requirements.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should obtain an enforceable commitment from the trustees for the Fund to: (1) continue to have an independent investment manager to control and manage the Fund's assets and investments after the present managers' contracts expire in October 1982; and (2) use the same selection criteria and qualifications as in the past should the trustees decide to replace the present investment managers after October 1982.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should obtain an enforceable commitment from the trustees for the Fund to: (1) continue to have an independent investment manager to control and manage the Fund's assets and investments after the present managers' contracts expire in October 1982; and (2) use the same selection criteria and qualifications as in the past should the trustees decide to replace the present investment managers after October 1982.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should require that future Fund trustees meet the criteria and qualifications similar to those established in 1977, closely monitor the selection of future trustees, and veto the selection of a trustee not meeting the criteria.
Closed – Implemented
Please call 202/512-6100 for information.
Internal Revenue Service The Secretary of Labor, in consultation with the Commissioner of Internal Revenue, should require that future Fund trustees meet the criteria and qualifications similar to those established in 1977, closely monitor the selection of future trustees, and veto the selection of a trustee not meeting the criteria.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor should direct the Office of the Solicitor to carry out the recommendations in the Kotch-Crino report to honor the memorandum of understanding with Justice by: (1) establishing a more effective written system of referring potential criminal violations to Justice; (2) suggesting a single Justice coordinator for all Fund activities; (3) establishing procedures wherein Justice periodically orients and briefs officials of the Office of the Solicitor; (4) suggesting one designated receiver in Justice for all Fund records; and (5) establishing a system wherein the Office of the Solicitor automatically forwards to Justice pertinent additional records regarding any matter previously referred.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor should direct the Office of the Solicitor to establish a more effective system to process referrals of potential criminal violations to Justice.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Justice The Secretary of Labor and the Attorney General should take action to have their December 1978 coordination agreement revised to define the higher officials who should or would resolve litigation strategy problems the working group members cannot resolve or consider reestablishing an Interdepartmental Policy Committee similar to the one established in 1975.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor and the Attorney General should take action to have their December 1978 coordination agreement revised to define the higher officials who should or would resolve litigation strategy problems the working group members cannot resolve or consider reestablishing an Interdepartmental Policy Committee similar to the one established in 1975.
Closed – Implemented
Please call 202/512-6100 for information.
Department of Labor The Secretary of Labor should direct the Labor-Management Services Administration (LSMA), during its current investigation at the Fund, to: (1) ensure that the LSMA Chicago staff performing the investigation receives proper training and uses all investigative techniques and procedures, particularly third-party interviews, to detect and develop potential criminal violations for referrals to Justice; and (2) effectively coordinates its investigative efforts with the Office of the Solicitor.
Closed – Implemented
Please call 202/512-6100 for information.

Full Report

Office of Public Affairs

Topics

Financial managementInteragency relationsInvestigations by federal agenciesLabor unionsLaw enforcementPension plan cost controlProgram managementTax administrationTrust fundsLitigation