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Release Date: 01/26/1998
Release Number:
V-18-CINN
Contact Name:RITA FORD
Phone Number:
202.219.8921
Contact Name: JOSEPH R. MENEZ
Phone Number: 606.578.4680
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The sponsor and trustees of the Dick DeRoberts
& Co. Pension Plan in Columbus, Oh., were ordered to pay $41,577.31 in
additional benefits to participants for improperly amending plan documents in a
manner that adversely affected the participants in violation of federal pension
law, according to a consent order and judgment obtained by the U.S. Department
of Labor. |
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Named as defendants were plan sponsor and
administrator Dick DeRoberts & Co., and trustees Richard DeRoberts, James
DeRoberts and Frances Celnar. |
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A complaint simultaneously filed by the department
alleged that the plan was retroactively amended in November 1991 to cease
benefits in December 1991 and January 1992 based on the participants' accrued
benefits as of June 1, 1990. The complaint alleged that this amendment was
precluded by the Employee Retirement Income Security Act (ERISA), Sec. 204 (g).
The complaint also alleged that the defendants failed to calculate benefits in
accordance with the actuarial requirements set forth in the plan's governing
documents. |
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The order and judgment requires that the money
restored to the plan be paid directly to the plan participants, to their IRAs,
or into the Dick DeRoberts Company 401(k) plan within 40 days of its entry,
which would cover the underpayment of pension plan benefits and the lost
opportunity costs incurred by participants due to the defendants' actions.
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"This settlement not only represents the
restoration of pension benefits to participants who have been shortchanged by
their pension plan, but also should serve as an incentive for plan fiduciaries
to perform effectively and in a manner that will not adversely impact on plan
participants," said Joseph R. Menez, Cincinnati regional director for the
Pension and Welfare Benefits Administration (PWBA). |
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The case resulted from an investigation by PWBA's
Cincinnati Regional Office into violations of ERISA. The case was filed and
entered on Jan. 23 in the federal district court in Columbus, |
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Herman v. DeRoberts
Civil Action No.
C2-98-99 |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7755. |
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