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Release Date: March 31, 2006
Release Number: 06-546-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Chicago, Illinois - The U.S. Department of
Labor has obtained a settlement requiring that $7,663.88 be paid to the
participants and beneficiaries of the Mid-Continent Screw Products
Profit Sharing Plan. Judith Hirsch, president of the Lincolnwood,
Illinois-based plan, will be handling distribution of the assets to
individuals entitled to benefits under the Employee Retirement Income
Security Act (ERISA).
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Kenneth Bazar, director of the
department’s Chicago regional office of the Employee Benefits Security
Administration (EBSA).
The settlement resolves a lawsuit filed by the Labor
Department, alleging that Hirsch withheld contributions from
employees’ pay but failed to remit those contributions to the profit
sharing plan in December 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 correct any violations
but allows them to avoid EBSA enforcement actions and civil penalties as
well as any applicable excise taxes. For more information about the VFCP,
visit www.dol.gov/ebsa.
The suit resulted from an investigation conducted by
the Chicago regional office of EBSA. Employers and workers can contact
the Chicago office at 312.353.0900 or EBSA’s toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. In fiscal year 2005, EBSA achieved monetary
results of $1.7 billion related to pension, 401(k), health and other
benefits for millions of American workers and their families.
Chao v. Hirsch
Civil Action No. 05 C 6242
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