Archived News Release Caution: Information may be out of date.
|
Release Date: 04/23/2004 Release
Number: 04-729-CHI Contact Name: Keke Vencill Phone
Number: 202.693.4650 |
Printer Friendly
Version |
|
Chicago, Illinois - The U.S. Department of Labor (DOL)
has obtained a consent judgment and order requiring the Clinic in Altgeld Inc.
of Chicago to restore $67,997 to the company's 401(k) plan as restitution for
delinquent employee contributions and loan payments that were not forwarded to
the plan. |
"Our legal action demonstrates our commitment to
protecting the retirement security of workers," said Kenneth Bazar, director of
the department's Employee Benefits Security Administration's (EBSA) Chicago
regional office, which investigated the case. "We took action to ensure that
assets are restored to the Clinic in Altgeld plan so that participants can
receive their future retirement benefits." |
The lawsuit alleges that Constance Jackson,
Paulette Cage, and the Clinic in Altgeld violated the Employee Retirement
Income Security Act of 1974 (ERISA) when they failed to timely remit employee
contributions and to remit loan payments owed to the company's 401(k) plan at
various times from April 1998 through October 2001. The suit also alleges the
defendants retained the assets with those of the clinic and the clinic failed
to obtain a fidelity bond as required by law. The suit was filed on April 1,
2004 in federal district court in Chicago. |
The Clinic in Altgeld Inc. is a Chicago-based
nonprofit organization that originated in 1970 to provide health care to
low-income families in the Altgeld Gardens Public Housing Project. The company
served as the plan administrator and Constance Jackson and Paulette Cage acted
as the trustees of the 401(k). According to the latest information available to
the department, the plan covered 48 participants and had $348,635 in
assets. |
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. |
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 312.353.0900 or through
its toll-free number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans.
|
(Chao v. The Clinic in Altgeld, Inc.) Civil
Action No. |
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. |
Archived News Release Caution: Information may be out of date.
| |
|