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Philadelphia, Pennsylvania - The U.S. Department
of Labor has obtained a consent judgment requiring the trustee to restore
$20,131 in delinquent employee contributions owed to the Terminal
Technologies Inc. 401(k) plan sponsored by defunct NLOCI Corporation, West
Chester, Pennsylvania.
“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 Mabel Capolongo, regional director of the
department’s Employee Benefits Security Administration (EBSA) in
Philadelphia.
Under the agreement, filed recently in the Eastern
District Court of Pennsylvania, Frank T. Fiascki will make full
restitution to the plan for failure to forward contributions deducted from
employees’ paychecks between June 2002 and March 2003. Fiascki also will
be removed as the plan’s trustee and will not serve as a trustee in the
future. An independent fiduciary will be appointed to administer,
terminate and distribute plan assets to six participants. At the time of
the improper plan transaction, Fiascki was president of NLOCI Corporation.
The complaint alleged that Fiascki failed to remit
employee contributions to a 401(k) plan in violation of the Employee
Retirement Income Security Act (ERISA).
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 program 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.
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. Employers and
workers can reach EBSA’s Philadelphia regional office at 215.861.5300 or
through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans.
(Chao v. Frank T. Fiascki, Terminal Technologies, Inc.
401(k) Plan)
Civil Action No. 04-cv-5699 |
