April 7, 2010

Court orders San Jose, California, company to restore more than $46,000 in retirement assets owed to former workers

San Francisco – The U.S. Department of Labor has obtained a default judgment restoring more than $46,000, including interest, to participants of a 401(k) profit-sharing plan of now-defunct Power & Data Technology of San Jose, California. The judgment resolves a lawsuit against the company and its former president, Michael D. Williams of Gilroy, California, over losses that resulted from mismanagement and misuse of plan assets.

April 7, 2010

U.S. Labor Department sues former Fort Lauderdale, Florida, construction company First State Development to restore pension assets

Fort Lauderdale, Florida – The U.S. Department of Labor has sued former Fort Lauderdale construction company First State Development and its chief executive officer to restore losses owed to the company’s 401(k) plan.

April 5, 2010

U.S. Department of Labor sues Miami-Dade County, Florida, vegetable broker to restore more than $3.7 million to employees’ pension plan

Miami – The U.S. Department of Labor has sued fiduciaries of the Orrin H. Cope Produce Inc. Employees’ Profit Sharing Plan to restore more than $3,780,000 in plan assets improperly used to benefit the company.

“The Labor Department will take legal action to protect workers’ benefits whenever, and wherever, violations occur,” said Secretary of Labor Hilda Solis. “Our suit puts plan officials on notice that the department will not tolerate the diversion of workers’ hard-earned retirement assets for the benefit of employers.”

April 5, 2010

U.S. Department of Labor and Colorado Division of Insurance to offer free health law seminar April 21 and 22 in Denver

Denver – The U.S. Department of Labor’s Employee Benefits Security Administration and the Colorado Division of Insurance will co-host a free health law compliance assistance seminar April 21 and 22 in Denver.

March 31, 2010

U.S. Labor Department obtains judgment restoring nearly $150,000 to employee stock ownership plan of upstate New York auto supplier

Binghamton, New York – The U.S. Department of Labor has obtained a consent judgment requiring Kellogg Auto Supply Co. Inc. of Cortland, New York, and company president and general manager Richard Coats to restore $149,573 to the company’s employee stock ownership plan.

March 30, 2010

U.S. Labor Department sues president of defunct Petersburg, West Virginia, company for failing to forward employee contributions to SIMPLE IRA plan

Elkins, West Virginia – The U.S. Department of Labor has sued Byron Goldizen, president of defunct Bryco Bore and Pipe Inc., formerly located in Petersburg, West Virginia, for violating his fiduciary responsibility under the Employee Retirement Income Security Act to the company’s SIMPLE IRA plan.

The suit alleges that Goldizen failed to remit employee contributions to the plan from June 2006 through December 2008. The company ceased operations and filed for bankruptcy protection under Chapter 7 on June 8, 2009.

March 29, 2010

Federal agencies hold 1st meeting of Medicaid, Children's Health Insurance Program and Employer Sponsored Coverage Coordination Working Group

Washington – The U.S. Departments of Labor and Health and Human Services will hold the first meeting of the Medicaid, Children's Health Insurance Program and Employer Sponsored Coverage Coordination Working Group on April 26 in Washington at the Omni Shoreham, 2500 Calvert St. NW.

The working group will meet from 9 a.m. to 5 p.m. EDT to hear public testimony from witnesses. The meeting is open to the public. The Children's Health Insurance Program Reauthorization Act of 2009 requires the departments to jointly establish the CHIP Working Group.

March 25, 2010

U.S. Labor Department issues final exemption to allow new health plan for Ford Motor Co. retirees to acquire company securities

Washington — The U.S. Department of Labor’s Employee Benefits Security Administration has granted an exemption allowing the Ford Motor Co. to transfer company securities to a voluntary employee beneficiary association trust that funds a new health plan established to provide health benefits for the company’s retirees. The new health plan will cover in excess of 285,000 retirees and their dependents, and a small number of active employees.

March 19, 2010

U.S. Labor Department announces updated model notices and educational material on extension of COBRA subsidy

Washington — The U.S. Department of Labor today released updated model notice packages to enable group health plans and employers to provide notice on the availability of the Consolidated Omnibus Budget Reconciliation Act continuation coverage premium reductions under the American Recovery and Reinvestment Act through March 31.

March 18, 2010

U.S. Labor Department obtains court appointed independent fiduciary for 401(k) plan abandoned by Rochester, New York, employer

New York – The U.S. Department of Labor has obtained a court order appointing an independent fiduciary to manage the abandoned 401(k) plan of defunct Project Solutions Inc. of Rochester, New York.

March 15, 2010

U.S. Labor Department sues owner of Delaware-based Stover Industries to recover workers’ 401(k) contributions

Delaware, Ohio – The U.S. Department of Labor has sued Carl Stover and Stover Industries Inc. in Delaware, for allegedly using employee contributions owed to the company’s 401(k) plan to pay the operating expenses of the company, in violation of the Employee Retirement Income Security Act (ERISA).

March 11, 2010

U.S. Department of Labor sues trustee of abandoned IXP Inc. 401(k) plan in Fruita, Colo.

Denver – The U.S. Department of Labor has filed a lawsuit in federal district court in Denver against the former president and owner of IXP Inc., Fruita, Colo., for abandoning the company's 401(k) plan as its trustee after the company ceased operations in January 2009. IXP Inc. installed gasoline distribution pipelines.

March 11, 2010

U.S. Labor Department obtains consent judgments recovering more than $12 million for employee stock plan participants in California and Washington

San Francisco – The U.S. Department of Labor has obtained consent judgments providing for restitution of more than $12 million from Clair R. Couturier Jr., David R. Johanson and Robert E. Eddy, plan officials and service providers involved with the employee stock ownership plan sponsored by The Employee Ownership Holding Co. of Stockton, California, and Fife, Washington.

March 10, 2010

U.S. Department of Labor sues former Tampa, Fla., pharmacy and officials to restore losses to 401(k) plan

Tampa, Fla. – The U.S. Department of Labor has sued Medipharm-RX Inc., a former Tampa pharmacy, and two plan administrators to restore losses to the pharmacy's 401(k) plan.

March 5, 2010

U.S. Department of Labor’s ERISA Advisory Council announces first meeting of 2010

U.S. Department of Labor’s ERISA Advisory Council announces first meeting of 2010

Washington – The Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council, will hold its first meeting of 2010 on March 22 in Washington, D.C., at the U.S. Department of Labor, 200 Constitution Avenue NW, Room S-2508.

March 4, 2010

U.S. Labor Department sues trustees of Westra Construction retirement plan in Waupun, Wis., over plan losses

Waupun, Wis. – The U.S. Department of Labor has sued a trustee of the Westra Construction Inc. Employee Stock Ownership Plan (ESOP) for alleged violations of the Employee Retirement Income Security Act (ERISA) that resulted in losses to the company-sponsored ESOP.

March 2, 2010

U.S. Department of Labor to offer free health law seminar on March 16 and 17 in Las Vegas

Las Vegas – The U.S. Department of Labor’s Employee Benefits Security Administration and the Nevada Division of Insurance will host a free health law compliance assistance seminar on March 16 and 17 in Las Vegas at the College of Southern Nevada, Charleston Campus, 6375 W. Charleston Blvd., Room D-101.

March 2, 2010

U.S. Labor Department secures appointment of independent fiduciary for 401(k) plan of defunct Cherry Hill, New Jersey, company

Cherry Hill, New Jersey — The U.S. Department of Labor has obtained a court order appointing Jacqueline Carmichael as the independent fiduciary of the 401(k) plan of ABC Wireless Inc., a defunct company formerly located in Cherry Hill. The court order gives Carmichael authority to terminate the plan and distribute plan assets to participants and beneficiaries.

February 26, 2010

U.S. Labor Department rules to improve retirement security announced as part of White House Middle Class Task Force's year-end report

Washington – Today, at a White House forum hosted by Vice President Joe Biden, the U.S. Department of Labor announced two new rules designed to enhance retirement security and transparency for the millions of workers covered by 401(k), pension and other retirement arrangements. The announcement was part of the White House Middle Class Task Force's year-end report, which the vice president released at this morning's event.

February 26, 2010

U.S. Labor Department sues to protect Utah retirement assets in bankruptcy proceeding

U.S. Labor Department sues to protect Utah retirement assets in bankruptcy proceeding

Salt Lake City – The U.S. Department of Labor has filed an adversary complaint in federal bankruptcy court in Utah to prevent Victor Jay Miller from discharging $26,964.51 in employee contributions owed to the Allwest Sales & Service Salary Reduction Simplified Employee Pension Plan.