Employee Benefits Security Administration

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. Employee benefits plans often have large shares in publicly held companies, therefore the agency has long held that it is important for plan administrators to know
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 Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the U.S. Secretary of
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. The rule amends a similar rule related to state savings initiatives pub
Monday, December 19, 2016
Date of action: Dec. 15, 2016 Type of action: Complaint Name of defendants: Urban Hotels Inc., doing business as LAX Plaza Hotel Urban Hotels 401(k) Plan and Trust Allegations: Based on an investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration, the department filed a complaint on Dec. 15, 2016, alleging that the defendants violated the
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. “Disability benefits are a lifeline for workers who are unable to work after becoming disab
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: Authorized Factory Service Inc. served as the p
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 all
Thursday, December 08, 2016
WASHINGTON – U.S. Secretary of Labor Thomas E. Perez today announced the appointments of five new members to the 2017 Advisory Council on Employee Welfare and Pension Benefit Plans, known as the ERISA Advisory Council. He also announced the incoming chair and vice chair of the council. “The ERISA Advisory Council is integral to the department’s work in enhancing and preserving the health and retirement benefits of Americ
Thursday, December 08, 2016
Date of Action: Dec. 8, 2016 Type of Action: Employee Retirement Income Security Act lawsuit Names of Defendants: Nicholas C. Caro N.C. Caro M.D., S.C. N.C. Caro M.D., S.C. Defined Benefit Plan Findings: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that Caro, a fiduciary to the N.C. Caro M.D., S.C. Defined Benefit Plan violated the
Thursday, November 03, 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. The meeting will take place at the Frances Perkins Build
Tuesday, November 01, 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. After a trial, the U.S. District Court for the Northern District of California found the defendants acted “in blatant disregard of the express terms of the plan document and of their fiduciary duties” under the
Tuesday, November 01, 2016
WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration, the Internal Revenue Service, and the Pension Benefit Guaranty Corporation today released advance informational copies of the 2016 Form 5500 annual return/report and related instructions. The “Changes to Note” section of the 2016 instructions highlight important modifications to the Form 5500 and Form 5500-S
Thursday, October 27, 2016
Date of Action: Oct. 25, 2016 Type of Action: Employee Retirement Income Security Act Lawsuit Names of Defendants: Todd Olson, Dell Inc., Dell Inc. Simple IRA Plan Allegations: An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that fiduciaries to the Dell Inc. Simple IRA Plan violated the Employee Retirement Income Security Act. Todd Olson
Thursday, October 27, 2016
WASHINGTON – In light of the devastation following Hurricane Matthew, the U.S. Department of Labor’s Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi announced today an update on compliance with employee benefit plan rules for those adversely impacted. The department understands that plan fiduciaries, employers, labor organizations, service providers, and participants and beneficiaries may encounter compliance-related issues over the next few months in connection with em
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. Filed in the Western District of Virginia, Lynchburg Division, the lawsuit alleges that the owner of Sentry Equipment Erectors, Inc., Adam Vinoskey, sold his stock to the company’s ESOP at an inflated price in 2010. The ov
Tuesday, October 04, 2016
Date of Action: Oct. 3, 2016 Type of Action: Order of Dismissal Name(s) of Defendants: Tarry Bratton B.C. Inc. 401(k) employer-sponsored retirement savings plan Allegations: After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration, the department
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.  An investigation by the U.S. Department of Labor’s Employee Benefits Security Adm
Monday, September 26, 2016
WASHINGTON – Fiduciaries of a health plan covering employees of a major western lumber producer have agreed to settle claims that they did not comply with the Affordable Care Act and the Employee Retirement Income Security Act when providing healthcare benefits and deciding worker claims for healthcare benefits. After an investigation by the department’s Employee Benefits Security Administra
Thursday, September 22, 2016
Date of Action: Sept. 22, 2016 Type of Action: Complaint Name(s) of Defendants: Steven Keares Inc. Harry Keares Steven Keares Inc. 401(k) Retirement Plan Background:  Steven Keares Inc., an electrical equipment installation company with offices in Exton, Pennsylvania, sponsored the Steven Keares Inc. 401(k) Retirement Plan for its employees. Harry Keares is the company’s president a
Wednesday, September 21, 2016
HARTFORD, Conn. – The U.S. Department of Labor has sued a Bridgeport nursing home and its chief officer alleging that they diverted millions of dollars from the company’s retirement plan improperly to a religious corporation and to themselves.  “The best interests of plan participants are paramount under federal law, and this agency will seek every remedy when retirement dollars are misdirected,” said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. “The alle

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