UNUM will pay $5.5 million in fines and penalties for failing to report special fees it paid an insurance broker in San Diego, according to United States Attorney Karen P. Hewitt. Between 2000 and 2004, Unum made payments without disclosing them to the plan administrator, violating ERISA regulations requiring administrators to provide information to the U.S. Department of Labor, Employee Benefits Security Administration, and the Internal Revenue Service.


"The Labor Department will not tolerate service providers who fail to disclose fees or compensation arrangements that impact benefit plans," said Bradford P. Campbell, assistant secretary of the Employee Benefits Security Administration. "This case demonstrates the importance of our enforcement and regulatory efforts to ensure that benefit plan fiduciaries have the information they need to fulfill their responsibilities and to protect the interests of the workers in their plans."

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