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Release Date: 07/12/2002
Release Number: 2-28
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Denver, Colorado - The U.S.
Department of Labor obtained a consent judgment June 28 against a Denver-based
plan official of the now defunct Overlake Mortgage Company’s (OMC) self-funded
medical benefits plan. James Park, a fiduciary to the plan and owner of
the company, agreed to pay all outstanding health claims totaling $13,839.23
plus $1,600 for the cost of administering the plan and paying the outstanding
claims. |
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The department’s suit was filed
May 14, 2002 in Denver federal district court. The company went out of
business in 2000. Between November 1, 1999 and March 30, 2000, Park failed to
transfer more than $15,000 in employee contributions to the contract benefits
administrator, causing plan participants’ medical claims to remain unpaid. |
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“Our goal is to protect the
hard-earned benefits promised by employers,” said Gregory Egan, director of
the Kansas City Regional Office of the Labor Department’s Pension and Welfare
Benefits Administration (PWBA), which investigated the case. |
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Egan noted that employers with
similar problems, who are not yet the subject of an investigation by PWBA, may
be eligible to participate in the department’s Voluntary Fiduciary Correction
Program (VFCP). Participation in the VFCP requires employers to make
workers whole but allows them to avoid government enforcement actions and civil
penalties as well as any applicable excise taxes. |
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“The VFCP program gives plan
sponsors a way to come into compliance with ERISA by restoring workers’
benefits while avoiding an investigation by the government,” said Egan.
“It protects workers’ health and retirement benefits and allows us to focus
our resources on those who seek to avoid compliance.” |
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For more information about the
VFCP see PWBA's Web site. |
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Employers and workers can contact
the regional office at 1.816.426.5131 or PWBA's Toll-Free Employee &
Employer Hotline number at 1.866.275.7922 for help
with any problems relating to private-sector pension and health plans. |
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(Chao v. James Park
Civil Action No. 02-0937-AJ(BNB)) |
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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. |
