August 31, 2020

U.S. Department of Labor Proposes Rule on Employee Benefit Plan Proxy Voting and Exercises of Other Shareholder Rights

WASHINGTON, DC – The U.S. Department of Labor today made available a proposed rule that would address the application of the prudence and exclusive purpose duties under the Employee Retirement Income Security Act (ERISA) with respect to proxy voting and exercises of other shareholder rights. The proposed rule amends the Department’s longstanding “Investment duties” regulation at 29 CFR 2550.404a-1.

August 25, 2020

U.S. Department of Labor Obtains Default Judgment To Restore $65,842 to Defunct Ohio Company Retirement Plan

COLUMBUS, OH – The U.S. Department of Labor has obtained a default judgment requiring Robert Walton, Jr. – CEO of Hadsell Chemical Processing – to restore $65,842 to the Hadsell Chemical Processing Simple IRA Plan after the Department’s Employee Benefits Security Administration (EBSA) found that Walton, as plan fiduciary, violated the Employee Retirement Income Security Act (ERISA).

August 25, 2020

Federal Court Sentences Southern California Chiropractor After U.S. Department of Labor Uncovers Healthcare Fraud

LOS ANGELES, CA – The U.S. District Court for the Central District of California has sentenced Mahyar David Yadidi – a San Pedro, California, chiropractor – to prison and ordered him to make restitution for defrauding the International Longshore and Warehouse Union-Pacific Maritime Association (ILWU-PMA) Welfare Plan. The court’s action follows an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) and Office of Inspector General (OIG).

August 25, 2020

U.S. Department of Labor Obtains Consent Judgment OrderingConnecticut Companies to Restore $17,352 to Employees’ 401(k) Plan

HARTFORD, CT – The U.S. District Court for the District of Connecticut has approved a consent order and judgment requiring fiduciaries Executive Printing of Darien LLC, Chapin Packaging LLC and John Trask Pfeifle to restore $17,352.83 to the Darien, Connecticut, companies’ 401(k) retirement benefits plan.

August 20, 2020

U.S. Department of Labor Proposes Registration Requirements For Pooled Plan Providers

WASHINGTON, DC The U.S. Department of Labor today announced a notice of proposed rulemaking on pooled plan provider registration requirements. The proposal seeks to implement the registration requirements for “pooled plan providers” pursuant to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

August 18, 2020

U.S. Department of Labor Rule Will Improve Workers’ Ability to Measure Lifetime Benefits Payments to Determine Readiness to Retire

WASHINGTON, DC – The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today announced an interim final rule that will help workers determine their ability to retire by allowing them to estimate how their current savings in a 401(k)-type plan might translate into lifetime monthly payments.

The rule implements section 203 of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.

August 17, 2020

Federal Court Orders Nevada Leak Detection Company to Pay Retirement Plan Participants $51,434 for Unpaid Contribution, Associated Lost Interest

SAN FRANCISCO, CA – The U.S. District Court of Nevada has ordered Sin City Investment Group Inc. – operating as American Leak Detection of Southern Nevada – and its president Leland Keith Ozawa to pay $51,434 for missing employee contributions and associated lost interest owed to non-fiduciary participants of the American Leak Detection SIMPLE IRA Plan.

August 13, 2020

Court Sentences Former Union Health Plan Trustee and Vice President To 18 Months in Prison After U.S. Department of Labor Investigations

NEW YORK, NY – The U.S. District Court for the Southern District of New York has sentenced John Ulrich – former vice president of the International Brotherhood of Teamsters, Local 812 and former trustee of the Local 812 Health Fund – to 18 months in jail for soliciting bribe payments in violation of the Employee Retirement Income Security Act (ERISA).

July 30, 2020

U.S. Department of Labor Obtains Default Judgment Requiring Defunct Virginia Company to Restore $21,880 to Employee 401(k) and Benefit Plans

MCLEAN, VA – The U.S. District Court for the Eastern District of Virginia has approved a default judgment that requires Mahan Consulting Group LLC and its president and owner Shaun Marzett to restore $21,880 to the 401(k), health and welfare benefit plans of the now defunct consulting company in McLean, Virginia.

July 28, 2020

Federal Court Orders Millions Restored to Connecticut Health and Retirement Plans After U.S. Department of Labor Investigation, Litigation

BRIDGEPORT, CT – The U.S. District Court for the District of Connecticut has approved a consent judgment and order requiring Bridgeport Health Care Center Inc. (BHCC) – the operating entity of two former Bridgeport nursing homes – and former officer Chaim Stern, to pay a total of $3,366,957 to BHCC’s health and retirement plans to resolve violations of the Employee Retirement Income Security Act (ERISA).

July 22, 2020

U.S. Department of Labor Obtains Injunction Enjoining Fleet Owners Insurance Fund from Paying Attorney’s Fees in Defense of ERISA Violations

CLEVELAND, OH – The U.S. District Court for the Northern District of Ohio has issued a preliminary injunction enjoining the Fleet Owners Insurance Fund from paying or advancing attorneys’ fees to any of the defendants in a U.S. Department of Labor Employee Benefits Security Administration (EBSA) enforcement case.

July 14, 2020

U.S. Department of Labor Announces Appointments to Employee Retirement Income Security Act Advisory Council

WASHINGTON, DC – The U.S. Department of Labor today announced the appointment of five members and leadership for the 2020 Advisory Council on Employee Welfare and Pension Benefit Plans, also known as the ERISA Advisory Council. The 15-member council provides advice on policies and regulations affecting employee benefit plans governed by the Employee Retirement Income Security Act of 1974 (ERISA).

July 10, 2020

U.S. Departments of Labor, Health and Human Services, and the Treasury Issue Proposed Rule to Increase Flexibility for Grandfathered Group Health Plans

WASHINGON, DC – The U.S. Departments of Labor, Health and Human Services, and the Treasury today issued a proposed rule to amend the requirements for grandfathered group health plans and grandfathered group health insurance coverage to preserve their grandfather status.

June 29, 2020

U.S. Department of Labor Proposes to Improve Investment Advice And Enhance Financial Choices for Workers and Retirees

WASHINGTON, DCThe U.S. Department of Labor today announced that it is proposing a new exemption for investment advice fiduciaries. The Department’s actions today will benefit American workers and retirees by delivering more choices for their financial future with clear standards to be upheld by investment advice providers. The proposed exemption will be published in the Federal Register for notice and comment in the near future. 

June 23, 2020

U.S. Department of Labor Proposes New Investment Duties Rule

WASHINGTON, DCThe U.S. Department of Labor today announced a proposed rule that would update and clarify the Department of Labor’s investment duties regulation. The rule is intended to provide clear regulatory guideposts for plan fiduciaries in light of recent trends involving environmental, social and governance (ESG) investing.

June 19, 2020

U.S. Department of Labor Issues Proposed 2020 Self-Compliance Tool To Further Mental Health and Substance Use Disorder Parity Compliance

WASHINGON, DC The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) today released a proposed Self-Compliance Tool intended to help improve compliance with the Mental Health Parity and Addiction Equity Act (MHPAEA) and additional related requirements under the Employee Retirement Income Security Act of 1974 (ERISA).

June 17, 2020

U.S. Department of Labor Publishes Request for Information On Pooled Employer Plans and Other Multiple Employer Plans

WASHINGTON, DCThe U.S. Department of Labor has announced a Request for Information (RFI) on Prohibited Transactions involving Pooled Employer Plans (PEPs) under the Setting Every Community Up for Retirement Enhancement (SECURE) Act and other multiple employer plans.

June 16, 2020

Federal Court Orders Defunct Online Casino and Sweepstakes Company To Pay Former Employees $99,807 to Restore Health Plan Losses

SAN FRANCISCO, CA – The U.S. District Court for the District of Nevada has approved a default judgment against the now-defunct company Kizzang LLC and its president Robert Alexander, that requires them to pay $99,807 to former employees and their beneficiaries for violations of the Employee Retirement Income Security Act (ERISA) related to their employee health and welfare plan. 

June 3, 2020

U.S. Department of Labor Issues Information Letter On Private Equity Investments

WASHINGTON, DC The U.S. Department of Labor today issued an Information Letter under the Employee Retirement Income Security Act (ERISA) concerning private equity investments as a component of a professionally managed asset allocation fund offered as an investment option for participants in defined contribution plans. 

May 26, 2020

Indiana Business Owner Sentenced After U.S. Labor Department Investigation Finds Deception in Administration of Employees’ Benefit Plan

BRAZIL, IN – After an investigation by the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), Clay County, Indiana, Circuit Court Judge Robert Pell has sentenced Larry Morse – the owner of Western Indiana Logistics Inc. in Brazil, Indiana – to a suspended term of 180 days incarceration and 180 days probation.

Morse pleaded guilty to one misdemeanor count of deception.