Donovan urges new clout to enforce pension laws

Labor Secretary Raymond Donovan urged a House Ways and Means subcommittee to approve an administration request for major new powers to enforce pension fund laws, using the $3.8 billion Teamsters Central States Pension Fund as the prime example of the need.

He said a five-year agreement between the government and the Teamsters fund expires Oct. 3 and that, without the agreement, the government will have only one way to force the fund to handle its assets properly - revocation by the Internal Revenue Service of the its tax-exempt status. The administration bill would allow the IRS to levy a penalty against culpable trustees and administrators individually who violate conditions of the agreement.