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Release Date: 03/17/2005
Release Number: 05-445-PHI (ebsa 05-026)
Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102
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Charleston, West Virginia - The U.S. Labor
Department has obtained a consent judgment requiring Davis Wooddell, sole
owner and president of defunct Trojan Steel Company (TSC) and former
trustee of the company’s health and welfare plan, to restore $11,323 to
plan participants as compensation for contributions and premiums that were
never forwarded to the plan’s health insurance carrier. TSC, doing
business as New Steel Company, is a Charleston, West Virginia, steel
manufacturing firm that ceased operation in October 2002. |
As
part of the consent judgment, Wooddell must also pay the Labor Department
a $2,265 civil money penalty under the Employee Retirement Income Security
Act (ERISA). |
“Plan
officials have a legal responsibility to properly handle all plan assets
entrusted to them,” says Mabel Capolongo, regional director of the
Employee Benefits Security Administration (EBSA). “This action will
ensure that former TSC employees receive the funds they earnestly
contributed to their health and welfare plan.” |
Under
the plan, administered by Mountain State Blue Cross/Blue Shield,
participants were required to contribute a percentage of the health
insurance premium through payroll deduction. Former employees who
participated in the plan also paid premiums to Trojan for coverage under
the Consolidated Omnibus Budget Reconciliation Act (COBRA). |
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EBSA’s investigation revealed that from June through
August 2002, both the payroll deductions for participating employees
totaling $6,545 and COBRA premiums collected from former employees
totaling $3,530 were retained in Trojan’s general account and never
forwarded to Mountain State as required by ERISA. |
In
fiscal year 2004, EBSA achieved record monetary results of $3.1 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. The Washington District Office of
EBSA investigated the case. Employers and workers with questions or
concerns regarding their private-sector pension and health plans can
contact the EBSA Washington District Office at 301.713.2000 or EBSA’s
toll free number, 1.866.444.EBSA (3272). Information is also available
from the agency’s Web site at www.dol.gov/ebsa. |
(Chao
v. Wooddell)
Civil Action No. 2:05-0199 |
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. |
