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Release Date: 12/11/2002
Release Number: 68
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Indianapolis, Indiana - The U.S. Department of
Labor filed a lawsuit on December 5, against Indy Truck and Trailer
Service, Inc. of Indianapolis, Indiana and the trustee of its retirement
plan for failing to forward pension contributions deducted from employees’
wages to the plan. |
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The suit alleges that Stephen A. Herr and the company
violated the Employee Retirement Income Security Act (ERISA) by using
workers’ pension contributions from March 7, 1997 to March 12, 1999 to
pay the operating expenses of the company. The suit also alleges that the
defendants failed to obtain a fidelity bond for plan years 1999 to 2001 as
required by law. Indy Truck, the plan’s administrator, allegedly did not
give workers a summary description of plan rules, which is also required
by ERISA. |
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“Pension plans must be managed to benefit their
participants. Their assets must be used for that purpose alone,” said
Joseph Menez, director of the Cincinnati regional office of the Labor
Department’s Pension and Welfare Benefits Administration (PWBA), which
investigated the case. |
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The department’s suit seeks a court order requiring
the defendants to reimburse the plan for all losses with interest, to
offset Herr’s plan account, and to permanently bar Herr from serving as
a fiduciary or service provider to any plan governed by ERISA. The suit
also asks the court to appoint an independent fiduciary to manage the plan
after Herr is removed as a trustee. |
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Indy Truck sponsored a retirement plan that covered as
many as nine participants. The plan had cumulative assets of $72,133 as of
April 30, 2001. |
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Joseph Menez noted that employers with similar problems
who are not yet the subject of an investigation by PWBA 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 PWBA enforcement actions and civil penalties as well
as any applicable excise taxes. |
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For more information about the VFCP see www.dol.gov/pwba. |
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Employers and workers can reach the Cincinnati regional
office through PWBA’s Toll-Free Employee & Employer Hotline number,
1.866.275.7922, for help with any problems relating to private-sector
pension and health plans. |
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(Chao v. Herr
Civil Action No. IP-02-1885)
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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. |
