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Release Date: 02/23/2004
Release Number: 04-91-BOS/BOS 2004-035
Contact Name: Gloria Della
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor has obtained a consent order restoring $80,000 to reimburse the
pension plan of Niagara Falls Memorial Medical Center in Niagara Falls,
New York. The plan’s administrator used the money to improperly pay
legal fees after retirees sued the medical center over reduced lump sum
benefits paid at retirement. |
“This
legal action sends a clear message that the department will vigorously
enforce the law to protect employee retirement assets,” said James
Benages, director of the Boston regional office of the department’s
Employee Benefits Security Administration (EBSA). |
The
lawsuit, filed in federal district court in Buffalo, alleges that the
medical center violated the Employee Retirement Income Security Act (ERISA)
when it used plan assets in December 1997 to make payments in settlement
of a lawsuit against the center and the plan. In the suit, the department
took the position that the center should have paid its proportionate share
of the legal fees rather than having the plan pay all of the fees. |
Niagara
Falls Memorial Medical Center sponsored the pension plan for 1,200
participants. The plan had $11-12 million in assets, according to the
latest financial information available to the department. |
The
Boston regional office of EBSA investigated the case. Employers and
workers can reach the Boston office at 617.565.9600 or through EBSA’s
toll-free number, 1.866.444.EBSA (3272), for help with problems relating
to private-sector retirement and health plans. |
In
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. |
(Chao
v. Niagara Falls Memorial Medical Center)
Civil Action No. 04-CIV-80, WDNY |
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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. |
