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Release Date: July 15, 2008
Release Number: 08-869-KAN
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976

U.S. Labor Department seeks to restore employee contributions owed to Salina, Kansas 401(k) and health plans

Salina, Kansas – The U.S. Department of Labor has sued the trustees of the 401(k) and health plans of defunct B&W Electrical Contractors Inc. (formerly of Salina) for failure to forward $22,670.22 in employee contributions to the 401(k) plan and $7,584.82 in health care premiums to the health plan.

The lawsuit alleges that trustees Warren Merrill and Jeffrey Merrill violated the Employee Retirement Income Security Act (ERISA) by failing to forward employee contributions to the plans from May through August 2005. The suit asks the court to require that the Merrills restore all losses to the plans and participants.

Warren Merrill was the president and owner and Jeffrey Merrill was the vice president of B&W Electrical Contractors, an electrical contracting business before ceasing operations in 2005.

“The Labor Department is committed to protecting workers’ benefits when plan assets are either misused or the plans are abandoned,” said Steve Eischen, director of the department’s Employee Benefits Security Administration (EBSA) Kansas City Regional Office.

The suit, filed in the U.S. District Court for the District of Kansas, resulted from an investigation conducted by EBSA’s Kansas City regional office. In fiscal year 2007, the agency achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach the regional office at 816.285.1800 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

Chao v. Merrill
Civil Action Number: 5:08-cv-4083

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