Archived News Release Caution: Information may be out of date.
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Release Date: 03/29/2001 Release
Number: V-364 Contact Name: Sharon Morrissey Phone Number:
202.219.8921 |
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A federal district court judge in Grand Rapids,
Michigan, on March 28 ordered the owner of Snyder Farm Supply to purchase and
maintain a fidelity bond for the companys 401(k) plan until the latter is
terminated. Defendant Thomas E. Snyder of Alto, Michigan, also was ordered to
direct the plans custodian to distribute or roll over the accounts of
plan participants. |
Under the consent judgment and order obtained by
the U.S. Department of Labor, Snyder, who was a fiduciary of the 401(k) plan,
further agreed to pay all expenses related to the distributions, rollovers or
plan termination, except for annual maintenance fees charged against each plan
participants account. |
The judgment/consent order resolves the
departments lawsuit, filed December 4, 2000, alleging that Snyder violated
the Employee Retirement Income Security Act (ERISA) by failing to bond the
pension plan offered to company employees. ERISA Section 412 requires
fiduciaries of private sector pension plans to obtain a bond in the minimum
amount of 10 percent of the amount of plan funds handled to protect employee
benefit plans against loss caused by acts of fraud or dishonesty. |
At various times during the plans five-year
existence, there were as many as 44 plan participants and assets of $241,651.
The plan had 14 plan participants and $44,535 in assets as of
November 28,
2000. |
This case represents our commitment to
protect workers by seeing that plan assets are secure from losses incurred
through dishonesty or theft and that participants receive their retirement plan
distributions, said Joseph Menez, director of the Cincinnati Regional
Office of the departments Pension and Welfare Benefits Administration,
which investigated the case. |
(Chao v. Thomas E. Snyder and Snyder Farm Supply
Inc. 401(k) Plan Civil Action No. 1:00CV 889) |
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 202.693.7775. |
Archived News Release Caution: Information may be out of date.
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