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Release Date: 1/23/1999
Release Number:
99-214
Contact Name: Sharon Morrissey
Phone Number:
202.219.8921 |
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The U.S. Labor Department has obtained a partial
settlement in its case involving an Anniston, Ala. non-profit
corporation’s 401(k) profit sharing plan. |
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The action will result in $9,000 being recouped
for the plan and will resolve a restitution issue concerning employee
contributions of $8,331.82 not remitted to the plan for the period of April 30,
1997 to June 30, 1997, as well as interest which would have accrued. |
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The Community Action Agency of Calhoun, Cleburne
& Cherokee Counties, Inc. (CAA), the plan sponsor, was sued July 8 for
failure to timely remit more than $11,000 of employee contributions to the
plan. Also named in the lawsuit was Dr. Nimrod Q. Reynolds, who was the
corporation’s executive director and plan trustee. Litigation against him
is still pending. |
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CAA employees were required to contribute five
percent of their compensation to the plan, which began operating in April,
1992. On Aug. 31, 1995, the plan had 95 participants and assets totaling
$340,131. The department alleged the company violated the Employee Retirement
Income Security Act (ERISA) when it used the funds to finance CAA’s
operations |
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The settlement was the result of an investigation
conducted by the Atlanta Regional Office of the Department Of Labor’s
Pension and Welfare Benefits Administration. The settlement was entered in the
federal district court in Birmingham, Ala. on Nov. 16. |
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Herman v. Community Action Agency of Calhoun,
Cleburne & Cherokee Counties, Inc. et al
Civil Action No. CV
99-L-1747-E |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
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