|
|
|
Release Date: 08/21/2003
Release Number: 353
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
|
Printer Friendly
Version
|
|
|
|
Cincinnati, Ohio - The trustee of the 401(k)
plan of Lancaster, Ohio-based Glass Service Company, Inc., (GSC) was
ordered to pay $28,451.94, including interest, to the plan under a consent
judgment obtained by the U.S. Department of Labor on August 19, 2003. |
|
Defendant trustee Kevin W. Collis agreed to offset his
account balance, which will be reallocated to the accounts of all plan
participants and beneficiaries, except Collis. In addition, Collis will
make scheduled payments under the court order to repay the full amount
owed to the plan and then will terminate the plan. |
The
department sued Collis on March 17 in federal district court in Columbus,
Ohio, for failing to forward employee contributions and loan repayments to
the plan and retaining the contributions with the general assets of the
company. The department simultaneously filed an adversary complaint in
federal bankruptcy court seeking to prevent Collis from discharging any
debt owed to the plan in bankruptcy proceedings. |
The
department alleged that at various times over the period from January 1,
2000, to April 2002, GSC failed to remit or timely forward to the plan
contributions withheld from employees’ wage. The company also failed to
forward to the 401(k) plan loan repayments withheld from employee
paychecks from January 1, 2001, through March 31, 2002. |
|
Glass Service Company, Inc., a wholesale and retail
window glass products sales and service firm, lost its corporate status
with the State of Ohio in December 2002. Collis filed for Chapter 7
bankruptcy on December 11, 2002. The plan had 26 participants and assets
totaling $113,000. |
Joseph
Menez, director of the department’s Cincinnati regional office of the
Employee Benefits Security Administration (EBSA), said, “We acted to
protect the employees’ contributions to the plan to ensure the money is
available to pay promised retirement benefits in the future.” |
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 make workers whole but allows them to avoid EBSA enforcement
actions, civil penalties and any applicable excise taxes. For more
information see www.dol.gov/ebsa. |
Employers
and workers can contact the Cincinnati Regional Office at 859.578.4680 or
EBSA’s toll free number, 1.866.444.EBSA (3272), for help with any
problems relating to private-sector pension and health plans. |
(Chao
v. Collis)
Civil Action No. C2 03 2333
Bankruptcy Action 03-02122 |
|
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. |
