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Release Date: 02/02/2004
Release Number: 04-90-CHI
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Columbus, Ohio - The U.S. Department of Labor
has sued defunct General Clay Products Corporation, of Columbus, Ohio, for
abandoning the company’s retirement plan, and also filed suit against
its president for failing to forward employee contributions to the health
plan. The alleged violations resulted in the loss of health insurance
coverage for company workers. |
The
lawsuit contends that Harold B. Epler, Jr., the president and sole member
of the board of directors, neglected to forward employee contributions to
the company’s health plan, causing the insurance carrier to cancel
coverage for company employees. The plan was abandoned when the company
closed. |
“We
took this action to ensure that the plan participants received the money
still owed to them,” said Joseph Menez, director of the Employee
Benefits Security Administration’s (EBSA) Cincinnati regional office. |
Plans
are considered orphaned when officials neglect their duties and plan
participants are unable to access their accounts and obtain distributions.
The department’s lawsuit also alleges retirement plan assets had not
been valued and allocated to the participants’ accounts on an annual
basis. |
The department filed the lawsuit in Columbus federal
district court to have an independent fiduciary terminate the retirement
plans. The lawsuit also asks that the defendants restore all health plan
losses and be permanently barred from serving plans governed by the
Employee Retirement Income Security Act. |
General
Clay ceased operating in January 2001. At that time, Epler and his
children received full distributions from the plan, but no benefits have
been distributed to other participants since July 19, 2002. As of June 30,
2003, the retirement plan had 13 participants and assets totaling
$158,528.63. |
In
fiscal 2003, EBSA achieved record monetary results of $1.4 billion related
to the pension, 401(k), health and other benefits of millions of American
workers and their families. Employers and workers can contact the
Cincinnati Regional Office at 859.578.4680 or through EBSA’s toll free
number, 1.866.444.EBSA (3272), for help with any problems relating to
private-sector pension and health plans. |
(Chao
v. Epler)
Civil Action No. C2-04-046 |
U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |