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News Release

Ohio Plan Sponsor And Trustees Ordered To Pay More Than $41,000 Of Additional Benefits To Participants For Under Calculating Benefits

Archived News Release — Caution: Information may be out of date.

The sponsor and trustees of the Dick DeRoberts & Co. Pension Plan in Columbus, Oh., were ordered to pay $41,577.31 in additional benefits to participants for improperly amending plan documents in a manner that adversely affected the participants in violation of federal pension law, according to a consent order and judgment obtained by the U.S. Department of Labor.

Named as defendants were plan sponsor and administrator Dick DeRoberts & Co., and trustees Richard DeRoberts, James DeRoberts and Frances Celnar.

A complaint simultaneously filed by the department alleged that the plan was retroactively amended in November 1991 to cease benefits in December 1991 and January 1992 based on the participants' accrued benefits as of June 1, 1990. The complaint alleged that this amendment was precluded by the Employee Retirement Income Security Act (ERISA), Sec. 204 (g). The complaint also alleged that the defendants failed to calculate benefits in accordance with the actuarial requirements set forth in the plan's governing documents.

The order and judgment requires that the money restored to the plan be paid directly to the plan participants, to their IRAs, or into the Dick DeRoberts Company 401(k) plan within 40 days of its entry, which would cover the underpayment of pension plan benefits and the lost opportunity costs incurred by participants due to the defendants' actions.

"This settlement not only represents the restoration of pension benefits to participants who have been shortchanged by their pension plan, but also should serve as an incentive for plan fiduciaries to perform effectively and in a manner that will not adversely impact on plan participants," said Joseph R. Menez, Cincinnati regional director for the Pension and Welfare Benefits Administration (PWBA).

The case resulted from an investigation by PWBA's Cincinnati Regional Office into violations of ERISA. The case was filed and entered on Jan. 23 in the federal district court in Columbus,

Herman v. DeRoberts
Civil Action No. C2-98-99

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Archived News Release — Caution: Information may be out of date.

Contact Name:RITA FORD
Phone Number: 202.219.8921
Contact Name: JOSEPH R. MENEZ
Phone Number: 606.578.4680

Employee Benefits Security Administration
January 26, 1998
Release Number