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Release Date: 06/02/2005
Release Number: 05-956-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
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Chicago, Illinois - The U.S. Department of Labor
has obtained a settlement permanently barring the president of Bimet
Corporation of Morris, Illinois, from serving as a fiduciary for employee
benefit plans governed by the Employee Retirement Income Security Act (ERISA)
and requiring restoration of $10,950.61 to the company’s 401 (k) and
profit sharing plan. |
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“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Kenneth Bazar, director of the department’s
Chicago regional office of the Employee Benefits Security Administration (EBSA). |
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The settlement resolves a lawsuit filed by the Labor
Department alleging that company president John Buckner failed to remit
employee contributions to the plan from November 30, 2001 through March
31, 2002. The settlement and lawsuit were filed in federal district court
in Chicago. The settlement provides that Buckner will distribute the plan’s
remaining assets to eligible participants within 15 days of entry of the
consent order and judgment. |
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Employers with similar problems, who are not yet the
subject of an investigation by EBSA, may be eligible to participate in the
department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the VFCP requires employers to correct violations of the
law but allows them to avoid EBSA enforcement actions and civil penalties
as well as any applicable excise taxes. For more information about the
VFCP, see www.dol.gov/ebsa. |
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The suit resulted from an investigation conducted by
EBSA’s Chicago regional office. Employers and workers can reach the
Chicago regional office at 312.353.0900 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. In fiscal year 2004, EBSA
achieved record monetary results of $3.1 billion related to the pension,
401(k), health and other benefits of millions of American workers and
their families. |
(Chao
v. Carlson)
Civil Action No. 04-05604 |
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U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit the
Department's Compliance
Assistance page. |
