Employee Benefits Security Administration

US Labor Department sues First Bankers Trust Services, Inc., Sonnax Industries, Inc. and its owners, to recover losses to Vermont ESOP

Thursday, January 5, 2017

MONTPELIER, Vt. – The U.S. Department of Labor is suing the fiduciaries of a Vermont employee stock ownership plan for violations of the Employee Retirement Income Security Act alleging that First Bankers Trust Services, Inc.’s 2011 purchase of the company on behalf of the ESOP from its two previous owners caused the plan to suffer sizable financial losses.

US Labor Department provides updated guidance on proxy voting by employee benefits plans

Wednesday, December 28, 2016

WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration announced today updated guidance for plan fiduciaries with respect to proxy voting. Specifically, the agency released Interpretive Bulletin 2016-01, which withdraws IB 2008-2 and reinstates earlier guidance related to such proxy voting, but with certain updates to clarify what the law requires of plan fiduciaries.

Suit seeks funds owed to retirement plan of Maryland company

Friday, December 23, 2016

Date of Action: Dec. 21, 2016

Type of Action: Complaint

Name(s) of Defendant(s): Larry Porter, Susan Porter, SeaBoard Management LLC, SeaBoard Management Inc., and SeaBoard Management Inc. Money Purchase Plan

New ERISA safe harbor for municipally sponsored IRAs

Monday, December 19, 2016

WASHINGTON – Increasing access to retirement savings opportunities is the surest way to help more of America’s workers secure their financial futures. Today, the U.S. Department of Labor’s Employee Benefits Security Administration is announcing a final rule to assist large cities and other political subdivisions that establish payroll deduction individual retirement account savings programs for workers who do not have access to workplace savings arrangements.

US Labor Department adds important protections to ensure fairness, transparency and accuracy of disability benefits claims process

Friday, December 16, 2016

WASHINGTON – It can be challenging for workers seeking disability benefits from an employer-sponsored plan to understand the process and why their claim is approved or denied. To improve the fairness, transparency and accuracy of the disability claims process, the U.S. Department of Labor has announced a final rule requiring that plans, plan fiduciaries, and insurance providers comply with additional procedural protections when dealing with disability benefit claimants.

US Labor Department sues Coraopolis, Pennsylvania, company for abandoning 401(k) plan after ceasing operations

Tuesday, December 13, 2016

Date of Action: Dec. 9, 2016

Type of Action: Complaint

Name(s) of Defendant: Authorized Factory Service Inc.

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Secretary of Labor filed a complaint alleging:

US Labor Department sues defunct Meyersdale company to restore unremitted participant contributions to employee 401(k) retirement plan

Monday, December 12, 2016

Date of Action: Dec. 2, 2016

Type of Action: Complaint

Defendant(s): Matthew Kenneth Smith
Wind Turbine Solutions LLC
Wind Turbine Solutions LLC Retirement Trust

Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Secretary of Labor filed a complaint alleging:

ERISA Advisory Council to present recommendations Nov. 9-10

Thursday, November 3, 2016

WASHINGTON – The Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council, will meet at U.S. Department of Labor headquarters Nov. 9-10, 2016, to finalize their recommendations and to receive an update from the Employee Benefits Security Administration.

The council has scheduled the EBSA update tentatively for the afternoon of Nov. 10.

US Department of Labor secures $866K judgment against fiduciaries of the California Pacific Bank’s employee benefit plan in San Francisco

Tuesday, November 1, 2016

SAN FRANCISCO – The U.S. Department of Labor has secured a judgment against San Francisco-based California Pacific Bank and four individual fiduciaries, requiring them to pay $866,840 in retirement benefits, plus interest, to employees who participated in the company’s stock ownership benefits plan.

US Labor Department sues Sentry Equipment Erector’s ESOP fiduciaries for failing to protect plan assets during multi-million dollar purchase of company

Wednesday, October 19, 2016

WASHINGTON – The U.S. Department of Labor has filed a lawsuit against the fiduciaries of a Virginia-based employee stock ownership plan, alleging the defendants failed to protect the assets of the plan as it purchased nearly $21 million in company shares from the president of Sentry Equipment Erectors Inc. who was also a trustee of the ESOP.

Department of Labor files complaint to recover more than $29K in losses to the Weinhagen Tire Co. Inc. 401(k) Plan

Wednesday, September 28, 2016

Date of Action: Sept. 27, 2016

Type of Action:  Filing of Complaint

Name(s) of Defendant: Michael E. Weinhagen, Weinhagen Tire Co. Inc., Weinhagen Tire Co. Inc. 401(k) Plan

Allegations: Michael E. Weinhagen is the sole owner and president of St. Paul, Minnesota-based Weinhagen Tire Co. and the fiduciary to the Weinhagen Tire Co. Inc. 401(k) Plan. 

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