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Release Date: September 13, 2006
Release Number: 06-1590-NEW
Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102
Burlington, New Jersey - The U.S. Labor
Department sued Russell Johnson and Shellene Barker, trustees of the
Johnson Specialized Transportation, Inc. 401(k) Plan, for allegedly
failing to forward more than $36,000 in employee and matching employer
plan contributions plus lost opportunity costs to the plan.
An investigation conducted by the department’s
Employee Benefits Security Administration (EBSA) determined that from
the time the plan was established in October 2001 through the time it
was frozen in 2003, the defendants failed to forward many contributions
or take reasonable steps to collect contributions owed to the plan from
Johnson Transportation.
“This action demonstrates the department’s
commitment to protect the retirement benefits of America’s workers,”
said Mabel Capolongo, director of the Philadelphia regional EBSA office.
The suit, filed in the U.S. District Court for the
District of New Jersey, seeks to restore to the plan all losses with
interest, remove Johnson and Barker as fiduciaries to the plan, appoint
an independent fiduciary over the plan, and permanently bar the
defendants from serving as fiduciaries or service providers to any ERISA-covered
plan.
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.
Employers and workers can reach the regional office
at 215.861.5300 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 fiscal year 2005, EBSA achieved monetary results of
$1.7 billion related to the pension, 401(k), health and other benefits
for millions of American workers and their families.
(Chao v. Johnson)
Civil Action No.: 1:06-cv-04245
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