October 5, 2023

Department of Labor reaches settlement with New York insurer, 3rd-party health plan administrator to end ‘cross-plan offsetting’ practice

NEW YORK – The U.S. Department of Labor has entered into a settlement agreement with EmblemHealth Inc., a New York-based insurer and third-party administrator of employment-based group health plans governed by the Employee Retirement Income Security Act, resolving claims that Emblem breached its fiduciary duties under federal law by engaging in a practice known as “cross-plan offsetting.”

September 29, 2023

US Department of Labor reaches settlement with United of Omaha Life Insurance Co. to reform its evidence of insurability practices

WASHINGTON – The U.S. Department of Labor today announced a settlement with United of Omaha Life Insurance Co. that requires the company to revise how it administers its requirement that participants in employer-sponsored life insurance plans provide proof of good health — referred to as evidence of insurability — before obtaining coverage in certain instances. 

September 28, 2023

Federal court orders Louisville technology services provider, retirement savings plan to repay $575K to plan participants

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

 

September 26, 2023

Flying Food Group will reimburse health plan participants more than $134K for diagnostic deductibles, tobacco surcharges, after federal investigation

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.

September 7, 2023

US Department of Labor seeks nominations for 2024 ERISA Advisory Council

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.

September 5, 2023

US Department of Labor files suit against Minnesota IT company for not remitting employee’s retirement plan contributions

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

August 30, 2023

Department of Labor obtains federal court judgment to recover $153K in retirement funds for former employees of defunct Bay Area company

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.

August 16, 2023

Federal judge issues preliminary injunction removing fiduciaries of Chicago-area employee benefit plan alleged to have misappropriated more than $2.8M

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.

August 7, 2023

Department of Labor obtains consent judgment barring Aliera Healthcare, CEO Shelley Steele from serving as ERISA fiduciaries, service providers

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.

August 4, 2023

US Department of Labor sues Wisconsin-based third-party claims administrator for denying medical claims for thousands of participants

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.

August 1, 2023

Court orders removal of Utah company CEO, co-owner as retirement plan fiduciary after investigation finds misuse of $300K

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.

July 17, 2023

Retirement plan fiduciaries to pay more than $124.6M to settle lawsuits brought by Department of Labor, others

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.

July 11, 2023

Court holds Baltimore company, owner in contempt for failing to comply with order to restore $153K to company’s employee 401(k) plan

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.

May 25, 2023

Court orders Harvey medical practice, owner to restore $90K to company’s 401(k) plan due to failure to remit plan contributions

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

May 1, 2023

Federal court approves plan to distribute assets to participants harmed by underfunded group health plan arrangement operating in 36 states

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.