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Minneapolis, Minnesota - The U.S. Department of
Labor has obtained a consent judgment requiring the trustee of the 401(k)
plans of Minneapolis, Minnesota-based The Pelican Group Inc. to restore
over $11,000 to the company’s savings and retirement plan. The suit
seeks to recover any missing assets, appoint an independent fiduciary to
oversee termination of the plan and distribute plan assets to eligible
participants.
Under the judgment, Benjamin K. Taylor was ordered to
offset his plan account to make restitution to the plan, removed as a
fiduciary to the plan and permanently barred from service to any plan
governed by ERISA except the Pelican Group Employer Solutions Plan. He
also must pay the cost of a fidelity bond for the plan.
The Labor Department sued The Pelican Group and its
owner, Benjamin K. Taylor, alleging they violated the Employee Retirement
Income Security Act (ERISA) by failing to timely remit the full amount of
employee contributions owed the plan for the period January 1, 2000 to
June 1, 2005. The plan held approximately $458,713 in assets as of August
12, 2005.
“The law requires plan fiduciaries to act responsibly
in managing money set aside in retirement plans for the benefit of workers
and their families,” said Steven Eischen, director of the department’s
Kansas City regional office of the Employee Benefits Security
Administration (EBSA). The regional office investigated the case.
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 Compliance Program (VFCP).
Participation in the program requires employers to reimburse plans and
participants 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 contact the Kansas City regional office at 816.426.5131 or
EBSA’s toll-free number at 1.866.444.EBSA (3272) for help with problems
relating to private-sector retirement and health plans.
(Chao v. Taylor)
Civil Action No. 05-2151 RHK/AJB |
