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Release Date: 08/26/2004
Release Number: 04-1713-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
today sued the former president of Bimet Corporation in Morris, Illinois,
for failing to timely remit employee contributions to the company’s
401(k) profit sharing plan and retaining the assets with those of Bimet. |
“The
Labor Department will aggressively enforce the law to protect the
retirement funds of this nation’s hardworking men and women,” said
Kenneth Bazar, director of the Employee Benefits Security Administration’s
(EBSA) Chicago regional office. “Our legal action will ensure that these
workers receive future benefits owed to them.” |
The
suit alleges that John Buckner violated the Employee Retirement Income
Security Act (ERISA) when he failed to remit contributions withheld from
employees’ paychecks to the 401(k) plan from November 30, 2001, to March
31, 2002. |
At
the time of the violation, Buckner was the president and majority owner of
Bimet. The suit alleges he failed to take steps to collect the delinquent
contributions owed to the plan, used the contributions to benefit Bimet
and failed to obtain a fidelity bond as required by law. |
The suit seeks to require that Buckner repay any losses
with interest, undo any transactions prohibited by law and be removed as a
fiduciary to the plan. The department also is seeking a court order to
appoint an independent fiduciary to terminate the plan and distribute its
assets to eligible participants. |
Bimet
was a manufacturer of bimetal thermostats for global appliance industry
until it ceased operations on July 12, 2002. That same year, the State of
Illinois involuntarily dissolved the company and its assets were sold. The
401(k) provides retirement, death or disability had three remaining
participants and $9,901.20 in assets as of October 2, 2002. |
Employers
with similar problems, who are not yet the subject of an investigation by
EBSA, may be eligible to participate in the department’s Voluntary
Fiduciary Correction Program (VFCP). Participation in the VFCP requires
employers to make workers whole but allows them to avoid EBSA enforcement
actions and civil penalties as well as any applicable excise taxes. For
more information about the VFCP, see www.dol.gov/ebsa. |
The
suit, filed in the federal district court in Chicago, resulted from an
investigation conducted by EBSA’s Chicago regional office. In fiscal
year 2003, EBSA achieved record monetary results totaling $1.4 billion for
retirement, 401(k), health and other programs. Employers and workers can
reach EBSA’s Chicago office at 312.353.0900 or through EBSA’s
toll-free number at 1.866.444.EBSA (3272), for help with problems relating
to private-sector retirement and health plans. |
(Chao
v. Buckner)
Civil Action No. 04 C 5604 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |