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Release Date: 12/30/1998
Release Number:
Chicago OPA V-335
Contact Name: RITA FORD
Phone
Number:202.219.8921 |
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The corporate trustee of a 401(k) and profit sharing plan in
Madison, Wis., was ordered to restore more than $50,000 to the plan for making
imprudent investments on participants’ behalf and for authorizing the plan
to engage in conflict-of-interest transactions in violation of the federal
pension law. |
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In a consent order and judgment obtained by the Labor Department,
DEC International Inc., was ordered to restore $58,877 to its 401(k) and profit
sharing plan. The corporation also serves as the plan sponsor and
administrator. A complaint filed by the department on Dec. 23 alleged that DEC
used plan assets to purchase individual whole life insurance policies, but
failed to independently investiMadison Wis. Corporate Trustee Ordered To
Restore More Than $50,000 To Plan For Federal Pension Law Violations gate its
merits. In addition, the corporation, acting in the capacity of the plan’s
sponsor, authorized a real estate sale transaction between itself and the plan
for property located on 4602 Helgesen Drive in Madison. |
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Both actions violated the Employee Retirement Income Security Act
(ERISA). DEC failed to act prudently and in the interest of the plan’s
participants by purchasing the whole life insurance and engaged in transactions
prohibited between related parties with the real estate sale. |
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DEC is a privately-held corporation that operates within the food
and dairy industries. |
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DEC manufactures equipment and other products for farms and food
plants. As of Dec. 31, 1994, its 401(k) and profit sharing plan had a total of
289 participants and assets totaling $21,264,939. |
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The consent order and judgment resulted from an investigation by
the Chicago Regional Office of the Pension and Welfare Benefits Administration
into violations of ERISA. The consent order and judgment were entered on Dec.
29, in the federal district court in Western District in Madison. |
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Herman v. DEC International, Inc.
Civil Action No.98 C 0868C
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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 202.693.7755. |
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