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Release Date: 10/09/2002
Release Number: 02-KC-EBSA-11
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Kansas City, Missouri - The U.S. Department of Labor obtained a
judgment on October 2, 2002, requiring the fiduciary of the Michaelsen Truck Line,
Inc. SIMPLE IRA plan of Mason City, Iowa to restore $26,729, plus interest, to
the individual retirement accounts (IRAs) of plan participants. |
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The department filed suit September 27, 2002, against Gary
Michaelsen, the president of Michaelsen Trucking, Inc. and the plan’s
fiduciary. The department’s Kansas City regional office of the Pension
and Welfare Benefits Administration (EBSA) investigated the alleged violations
of the Employee Retirement Income Security Act (ERISA). |
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The department’s complaint alleged that Michaelsen failed
to forward contributions to the employees’ IRA accounts that were withheld
from their paychecks at various times from January through December 2000, and
used the money to benefit the company. The lawsuit also alleged that
Michaelsen failed to forward to the participants’ IRAs the required three
percent employer matching contribution for 2000. |
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Gregory Egan, director of the EBSA’s Kansas City
office, noted that employers with similar problems, who are not yet the subject
of an investigation by the agency, may be eligible to participate in the
Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP
requires employers to make workers whole but allows them to avoid EBSA
enforcement actions and civil penalties as well as any applicable excise taxes. |
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Employers and workers can contact the Kansas City
regional office at 816.426.5131 or EBSA’s Toll-Free Employee & Employer
Hotline number, 1.866.275.7922,
for help with problems relating to private-sector pension and health plans. |
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The complaint was filed and the consent judgment was
entered in federal district court in the northern district of Iowa in Sioux
City. |
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(Chao v. Gary Michaelsen
Civil Action No. 02-3078) |
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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 202.693.7755. |
