Date of action: September 28, 2023

Type of action: Employee Retirement Income Security Act consent order and judgment 

Names of defendants:           Sypris Solutions Inc. and

                                                Sypris Solutions 401(k) Merged Retirement Savings Plan

CHICAGO – A Chicago food service provider for major airlines has agreed to reimburse $134,222 to participants in the company’s employee health plan after federal investigators found the employer improperly charged employees deductibles for certain diagnostic tests and wrongly imposed tobacco surcharges.

PHOENIX – The U.S. Department of Labor has recovered $22.5 million from an employee stock ownership plan’s former trustee, Reliance Trust Company for the plan’s overpayment for a recreational vehicle rental company’s stock, after obtaining approval of a consent judgment in the U.S. District Court for Arizona on Aug. 30, 2023.

WASHINGTON – The U.S. Department of Labor announced that its Employee Benefits Security Administration is seeking nominations to fill five, three-year vacancies on the Advisory Council on Employee Welfare and Pension Benefit Plans, known as the ERISA Advisory Council. The deadline to submit nominations is Oct. 23, 2023.

Date of Action:          Aug. 30, 2023

Type of Action:         Employee Retirement Income Security Act complaint filing

Company/Owners:   Virtual Matrix Corp.

Suman Thotakura

Virtual Matrix 401(k) Profit Sharing Plan

SAN FRANCISCO – The U.S. Department of Labor has obtained a default judgment to recover $153,768 for four people whose former employer abandoned its employee retirement plan more than two decades ago, leaving no one to administer the plan and authorize distribution of its funds, a violation of federal law.

WASHINGTON – The U.S. Department of Labor today announced that its Employee Benefits Security Administration will extend the grace period to obtain new Login.gov credentials for the EFAST2 filing system until Dec. 31, 2023, as part of the agency’s efforts to streamline the process for users.

CHICAGO – A federal judge has issued a preliminary injunction against the fiduciaries of a Chicago-based multiple employer welfare arrangement to protect the fund’s remaining assets after a Department of Labor investigation alleged its fiduciaries and counsel misused more than $2.8 million in fund assets, and that they continue to mismanage the fund.

WASHINGTON – The U.S. Department of Labor has obtained a judgment barring a plan administrator and its CEO Shelley Steele from serving as fiduciaries or service providers to any plan covered by the Employee Retirement Income Security Act, amid allegations they improperly paid themselves and affiliated businesses more than $100 million.

Date of Action:                      July 20, 2023

MADISON, WI – The U.S. Department of Labor has filed suit against the nation’s largest third-party medical claims administrator for routinely denying healthcare claims for emergency room services and urinary drug screening for at least 2,136 self-funded employee welfare benefit plans.

SALT LAKE CITY – A federal court in Utah has issued a preliminary injunction ordering the removal of the CEO and co-owner of Ascent Construction Inc. in Farmington as trustee of the company’s employee stock ownership plan after the U.S. Department of Labor learned he used more than $300,000 in the plan’s employee retirement funds to pay company business expenses.

WASHINGTON – The departments of Labor, Health and Human Services and the Treasury today announced an important step in addressing the nation’s mental health crisis by proposing rules to better ensure that people seeking coverage for mental health and substance use disorder care can access treatment as easily as people seeking coverage for medical treatments.

NEW YORK – Fiduciaries of a retirement plan sponsored by DST Systems Inc. — including New York City-based investment management firm Ruane, Cunniff & Goldfarb Inc. — will pay more than $124.6 million to resolve violations of federal law related to their failure to manage the profit-sharing portion of the plan properly.

BALTIMORE – A federal court in Maryland has cited a Baltimore logistics, engineering and management support services company and its owner for contempt of court for failing to comply with a May 2022 consent judgment and order requiring them to restore $153,590 in missing contributions and interest to the company’s 401(k) plan.

WASHINGTON – To help create and promote business ownership by America’s workers, the U.S. Department of Labor today announced the launch of a new Employee Ownership Initiative within its Employee Benefits Security Administration.

Date of Action:          May 25, 2023 

Type of Action:         Employee Retirement Income Security Act consent order and judgment

Company/Owners:    Chicago Metropolitan Obstetricians and Gynecologists Ltd.

Dr. Ernest Hayes

CHICAGO – Health plan participants, employers and medical providers harmed by a multiple employer welfare arrangement, or “MEWA” operating in 36 states will begin to finally receive payments related to more than $54 million in unpaid health claims after a federal court’s action, prompted by litigation and investigation by the U.S. Department of Labor.

WASHINGTON – The U.S. Department of Labor’s Employee Benefits Security Administration today issued Field Assistance Bulletin 2023-01 with frequently asked questions on the annual funding notice requirements for multiemployer pension plans that received special financial assistance under the American Rescue Plan Act.

WASHINGTON – The U.S. Department of Labor today announced a settlement with the Prudential Insurance Company of America — a subsidiary of Prudential Financial Inc. — that will require the financial giant to revise its practices after a federal investigation found the Newark, New Jersey-based company collected life insurance premiums from participants for extended periods, but then denied numerous claims after the participants died, citing the participants’ failure to provide evidence of insurability when they applied for insurance.