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Release Date: 11/04/2003
Release Number: 03-695-CHI
Contact Name: Rita Ford
Phone Number: 202.693.8664
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Dayton, Ohio - The U.S. Department of Labor has
obtained a consent judgment ordering the fiduciary of the health and
401(k) plans of WagnerWare Corporation in Sidney, Ohio, to restore $34,897
to the plans for failure to deposit in the plan contributions withheld
from employees’ paychecks. The judgment also appoints McDonald
Investments, Inc., as the independent fiduciary to resolve participant
claims, distribute plan assets and terminate the plans. |
In
addition, Peter Slyman is permanently barred from serving any plan
governed by the Employee Retirement Income Security Act (ERISA). |
“This
action underscores the Labor Department and Secretary Elaine L. Chao’s
commitment to protect the benefits promises made by employers to their
workers,” said Joseph Menez, director of the Cincinnati regional office
of the Employee Benefits Security Administration (EBSA), which
investigated the case. The consent order and judgment was entered in
federal district court in Dayton, Ohio. |
The
department filed the suit in June 2002, after an investigation by the
Department’s Employee Benefits Security Administration (EBSA), alleging
that Slyman retained plan contributions in the general assets of the
company; used the assets to pay the company’s operating expense; failed
to timely forward employees’ contribution to the health and 401(k) plans
from April 1997 through July 1999, and failed to obtain adequate fidelity
bonds for plan years 1998 and 1999. |
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WagnerWare Corporation, which operated as Wagner
Manufacturing Company, sponsored the health and 401(k) plans for 98
employees. The company ceased doing business in July 1999. |
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 and civil penalties, as well as any applicable excise taxes. For
more information about the VFCP, see www.dol.gov/ebsa. |
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. |
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(Chao v. Slyman)
Civil Action No. C 3-02-273 |
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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. |
