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Release Date: 09/09/2004
Release Number: 04-1544-CHI
Contact Name: Rita D. Ford
Phone Number: 202.693.8671
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Milwaukee, Wisconsin - The U.S. Department of
Labor has sued Brookfield, Wisconsin-based Garrett Group L.L.C. and the
administrator of its 401(k) savings plan for failing to forward employee
contributions to the plan of company-owned Badger Die Casting Corporation
of Milwaukee. |
“We
filed this case to ensure that the plan participants recoup the money they
set aside for their retirement years,” said Kenneth Bazar, director of
the Chicago regional office of the department’s Employee Benefits
Security Administration (EBSA), which investigated the case. |
The
suit, filed in the federal district court in Milwaukee, alleges that plan
sponsor Garrett Group, L.L.C. and administrator Steven Whiting violated
the Employee Retirement Income Security Act (ERISA). The company and
Whiting allegedly failed to forward contributions to the plan from Badger
Die Casting Corporation’s employees from December 2001 through April
2002. The defendants also allegedly failed to promptly forward the
contributions to the plan from August 2000 through November 2001. |
The
suit seeks to require the defendants to restore all plan losses plus
interest, correct all prohibited transactions, and permanently bar them
from serving as fiduciaries to any employee-benefit plans covered by ERISA. |
The plan provided retirement and disability benefits to
the employees of Garrett Group, L.L.C. and participating employers,
including Badger Die Casting Corporation. The 401(k) plan held $325,935 in
assets and had approximately 45 participants as of February 21, 2003. The
plan assets were distributed to participants as of February 2004. |
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 applicable excise taxes. For more
information about the VFCP see www.dol.gov.ebsa. |
In
fiscal year 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 reach
EBSA’s Chicago regional office at 312.352.0900 or through EBSA’s toll
free number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. The Garrett Group)
Civil Action No. 04-CV-00849 |
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. |