The Center for Mental Health, Inc., in Washington,
D.C., agreed to restore $226,932 in mandatory contributions, plus lost
interest, owed to two pension plans sponsored by the Center, as part of a
consent order obtained by the U.S. Department of Labor. The consent order was
filed on June 13.
Besides the restitution, the consent order
permanently bars the Center from violating provisions of federal pension law in
the future.
The Center is a non-profit organization which
provides mental health services to residents of the District of Columbia. The
two pension plans, the DC Institute of Mental Hygiene Annuity Plan and Money
Purchase Plan (the plans), covered as many as 48 employees and had assets of
$159,000 as of December 1998. The Center was required to contribute three
percent of each employees salary to the plans.
The Labor Department filed a lawsuit on June 8,
alleging that the Center violated the Employee Retirement Income Security Act
(ERISA). According to the lawsuit, the Center failed to collect $226,932 plus
interest in mandatory contributions owed to the plans and did not take steps to
collect the outstanding contributions.
This case resulted from an investigation conducted
by the Washington District Office of the Labor Departments Pension and
Welfare Benefits Administration into alleged violations of ERISA.
Mabel Capalongo, PWBA Regional Director for
Philadelphia, said, This case reaffirms our commitment to protect the
hard-earned benefits of workers against abuse. Workers can help us protect plan
benefits by contacting our office at 202-254-7013 about any suspected abuse of
their pension, health or other benefit plans.
(Herman v. The Center for Mental Health, Inc.)
Civil Action No. CV 01341 |