Archived News Release Caution: Information may be out of date.
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Release Date: 02/11/2004
Release Number: 04-93-BOS/BOS 2004-025
Contact Name: John M. Chavez
Phone Number: 617.565.2075
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Boston, Massachusetts - Trustees of the Rhode
Island Laborers' Legal Services Plan have agreed to restore $318,181 to
the plan to settle a lawsuit filed by the U.S. Department of Labor for
alleged violations of the Employee Retirement Income Security Act (ERISA),
the federal law that protects private sector employee benefit plans. |
"This
is a victory for workers who need the legal services these funds provide,
and it's an example of this Administration's commitment to ensure that
such plans are not over-charged for the benefits they provide to American
workers," said Secretary of Labor Elaine L. Chao. |
In
addition, the consent judgment and order requires changes in plan
procedures to ensure appropriate oversight of plan operations and the
hiring of an independent consultant with expertise in the prepaid legal
services field to oversee the task. The judgment also requires the
trustees to review, monitor and evaluate the operation of the plan on an
ongoing basis, including the quality and cost-effectiveness of services
provided to plan participants. |
Named
in the suit, filed July 14, 2003, were plan trustees Ronald Coia, Edward
DiRissio, Michael Gammino, and David Rampone. The Rhode Island Laborers'
Legal Services Plan provides legal services to members of the Rhode Island
Laborers' Union and their beneficiaries. The Rhode Island
Chapter-Associated General Contractors of America, Inc., the Rhode Island
Road Builders Associations, Inc. and the Rhode Island Laborers General
Council established the plan. |
According to the suit, the law firms Lepore and Coia,
LTD and G. Chandler Beals provided legal services to plan participants
since January 1997. During 1997, Lepore and Beals each received monthly
retainers of $9,000. From January 1, 1998 through on or about July 1,
2002, Lepore and Beals each received retainers of $11,000 per month.
Throughout this period, the number of plan participant matters handled by
Beals was substantially fewer than the number of matters handled by Lepore. |
The
department's suit alleged, among other things, that the trustees failed to
oversee and monitor the number of referrals and time worked by the firms
and to monitor the cost-effectiveness of services provided by the law
firms. |
The
judgment, entered in U.S. District Court in Rhode Island, resulted from an
investigation by the Labor Department’s Employee Benefits Security
Administration’s (EBSA) Boston regional office. Employers and workers
can contact the regional office at 617.565.9600 or the agency's toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector pension, health plans and other types of employee benefit
plans. In fiscal year 2003, EBSA has 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. |
(Chao
v. Ronald Coia)
Civil Action No. 03-293-S |
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. |
Archived News Release Caution: Information may be out of date.
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