First Federal Sues Pension Fund Over $3M Shortfall Demand

Law360, New York (April 18, 2013, 5:49 PM EDT) -- First Federal Bank FSB accused a pension plan in Kentucky federal court Wednesday of wrongfully demanding nearly $3 million to cover shortfalls in the plan's retiree obligations, alleging that the plan breached its contract and neglected its fiduciary duties.

The board of directors for the Pentegra Defined Benefit Plan for Financial Institutions, a pension plan and trust that works with federally insured financial institutions, threatened to expel the Kentucky bank if it didn't make additional payments, according to a lawsuit filed in the Eastern District of...
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