Date of Action: November 28, 2011
Type of Action: Civil Complaint & Consent Order and Judgment
Names of Defendants: Gary L. Goble, Stephens’ Drugs Inc. and the Stephens’ Drugs 401(k) Retirement Plan located in Louisville, Ky.
Allegations: Gary Goble and Stephens’ Drugs Inc., in their capacities as fiduciaries to the Stephens’ Drugs 401(k) Retirement Plan, failed to ensure that employee pre-tax contributions withheld by the company for the payroll pay dates January 5, 2007, through May 1, 2010, were segregated from the company’s general assets as soon as defendants reasonably could do so and did not remit all of them to the plan.
Resolution: The Department of Labor filed a civil complaint on November 22, 2011, and the court entered a consent order and judgment on December 2, 2011, in which the parties agreed that Goble and the company are jointly and severally liable to the retirement plan for $19,762.62, representing unremitted employee contributions and lost opportunity costs owed to the retirement plan. Goble and the company were ordered to pay $19,762.62 to the retirement plan on or before December 1, 2011. The parties also agreed to remove Goble and the company as fiduciaries of the retirement plan and appoint AMI Benefit Plan Administrators Inc. as an independent fiduciary to allocate the retirement plan assets, terminate the retirement plan and distribute retirement plan assets to participants. Goble agreed to pay the fees of the independent fiduciary. Goble and the company are permanently enjoined from violating Title I of the Employee Retirement Income Security Act and from serving as fiduciaries or service providers to any employee benefit plan subject to ERISA.
Court: United States District Court for the Western District of Kentucky
Docket Number: 3-11-cv-00654
Employers and workers can reach Employee Benefits Security Administration toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at www.dol.gov/ebsa.
U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.