Aloha Airlines pension plans get $10.5M - Business First of Columbus:

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million to make up for lossea suffered by thebankrupt airline’d three pension plans, federal labor officiale said Thursday. Under the separate settlement agreements withthe , and will pay a total of $9.5 milliom to the three plans to make up for the money they lost on investments in the stoco of Aloha’s holding which is also bankrupt, the Labor Departmen said in a news release. Aloha and the bankzs will pay another $954,546 in civil penalties to the viatheir trustee, Under the Aloha will pay a total of $5.5 million, and the bankas will pay $2.5 million each in restitutionh and civil penalties.
The Labor Departmen contended that Aloha and Bank of Hawaii allegedly had caused or permittecd the plans to buy stock ofthe airline’se holding company in September 2000 for more than its fair markegt value, breaching their fiduciary duties under the federal Employee Retirement Income Security Act, the department said. The government also contended that FirstHawaiian Bank, an investmeny manager for a portion of investments that weren’ involved in the transaction, facilitated the stock transactionm and thus knowingly participated in the fiduciary breaches or violatedd its duties as a co-fiduciary, it said in the news “We will vigorously pursue plan fiduciaries who engage in transactions with employer securities that are prohibited by ERISA,” said Alan D.
deputy assistant secretary for theLabor Department’s Employee Benefitsa Security Administration.