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Release Date: 04/08/1998 Release Number: USDL:
V-98 Contact Name:GLORIA DELLA Phone Number: 202.219.8921 |
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The U. S. Department of Labor has obtained a
settlement in which Deluxe Corp. and its subsidiary Deluxe Printers, Inc.,
based in St. Paul, Minn., have agreed to give employees a premium reduction on
life insurance payments owed for eligible participants and dependents. |
Under the consent order and judgment, the
companies will pay $163,098 to defray the cost of premiums for eligible
supplemental life insurance participants over the period Jan. 1, 1998 to Dec.
1, 1998. Eligible dependent life participants will receive a premium reduction
of $131,132 during the same period. |
Deluxe provides $10,000 of group life insurance at
no cost to employees. Employees may elect to purchase at their expense
additional coverage for themselves (known as supplemental life insurance) or
life insurance on dependents (known as dependent life insurance). As of Jan. 1,
1994, there were 10,994 participants in the group life plan, 5,803 in the
dependent life plan, and 8,528 in the salary continuation plan |
Deluxe Corporation is the parent of Deluxe Check
Printers, which operates more than 60 check printing facilities throughout the
U. S. Although Deluxe Corporation began as a check printing business, the
corporation also provides a variety of payment system products such as deposit
tickets, electronic transfer processing and related software, and automated
clearinghouse processing. |
The Labor Department filed a lawsuit on April 1
alleging that the companies improperly credited their corporate general
accounts all dividends received from Minnesota Mutual Life on the group life
and dependent life insurance plans. The dividends were based on favorable
claims experience under the insurance policies paid for by the contributions of
participants. |
The consent order and judgment was entered on
April 7 in federal district court in Minneapolis. This case resulted from an
investigation conducted by the Kansas Regional Office of the Labor
Departments Pension and Welfare Benefits Administration into alleged
violations of the Employee Retirement Income Security Act. |
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(Herman v. Deluxe Corp.) Civil Action No.
98-CV-1061JRT/RLE |
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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