Archived News Release Caution: Information may be out of date.
|
Release Date: 08/05/2004
Release Number: 04-1483-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
|
Printer Friendly
Version
|
|
Grand Rapids, Michigan - The U.S. Department of
Labor has obtained a default judgment requiring the owner and trustees of
the retirement plan of St. Joseph, Michigan-based American Tool & Mold
Inc. to pay $61,928 as restitution for failure to forward employee
contributions and loan repayments to the plan. The department also
obtained an order that prevents trustee Jeffrey M. Grenke from discharging
any debts owed to the plan in bankruptcy proceedings. |
“The
Department of Labor will aggressively enforce the law to protect the
retirement funds of this nation’s hardworking men and women,” said
Joseph Menez, director of the Cincinnati regional office of the Employee
Benefits Security Administration (EBSA). “Our legal action will ensure
that these workers receive the future benefits owed to them.” |
The
suit alleges that the owner, Jeffrey M. Grenke, violated the Employee
Retirement Income Security Act (ERISA) by failing to forward employee
contributions and loan repayments withheld from employees’ paychecks
from January 4, 2002, to August 28, 2002. From January 2001 to December
2001, he failed to timely remit employee contributions to the plan. The
plan held approximately $388,754 in assets as of February 26, 2003. |
The
suit, filed in the federal district court in Grand Rapids, resulted from
an investigation conducted by EBSA’s Cincinnati regional office. |
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 totaling $1.4
billion for retirement, 401(k), health and other programs. Employers and
workers can reach EBSA’s Cincinnati regional office at 859.578.4680 or
through EBSA’s toll-free number at 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans. |
(Chao v. Grenke)
Civil Action No. 52-011259(48)
Bankruptcy Case No. 03-01231 |
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.
| |
|