DOL’s Recent LM-30 Regulations Return to Historical Position Regarding Employee Benefit Plan Reporting

On October 26, 2011, the Office of Labor-Management Standards (“OLMS”) issued final regulations concerning reports made by labor organization officers and employees (“Form LM-30”).  The regulations, which are effective November 25, 2011, return to the Department’s historical position of not requiring officials to report on payments that they receive from trusts, or as a general rule, from unions.  The return to the historical interpretation for Form LM-30 reports means that employee benefit plans no longer need to file LMRDA reports for expenses reimbursed to union trustees, except with respect to payments that would create an actual or potential conflict of interest between the union official’s financial interest and the interests of the labor organization.  

 

Although this regulatory development is welcome news for union officials that serve as trustees for multiemployer plans, the 2011 regulations retained one detail of which trustees and plans should be aware. “While payments from a trust are not reportable by a union official on the revised Form LM-30, payments from and interests in any business that deals with the trust are reportable.” Consequently, trustees should still be cautious about reporting obligations related to gifts from investment managers, accountants, or other businesses that provide services to the plans.