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Detroit, Michigan - The U.S. Department of Labor
has obtained a settlement requiring that $24,679.65 be restored to the
Beninati Contracting, Inc. 401(k) plan and permanently barring the
president of Utica, Michigan based Beninati Contracting, Inc., from
serving as a fiduciary or service provider to any employee benefit plans
governed by the Employee Retirement Income Security Act (ERISA). The
settlement also provides that an independent fiduciary be appointed to
administer the plan.
“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 Joseph Menez, director of the department’s
Cincinnati regional office of the Employee Benefits Security
Administration (EBSA).
The settlement resolves a Labor Department lawsuit that
alleged the company’s president, Mark Beninati, failed to remit all
employee contributions and loan repayments to the 401(k) plan at various
times between 1999 and 2001.
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.
The suit, filed in federal district court in Detroit,
resulted from an investigation conducted by the Detroit district of EBSA’s
Cincinnati regional office. Employers and workers can reach the Cincinnati
regional office at 859.578.4680 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. Beninati
Civil Action No.: 04-74542 |
