Archived News Release Caution: Information may be out of date.
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Release Date: 07/29/2002
Release Number: 288
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Cincinnati, Ohio - The U.S. Department of Labor sued
Ratliff Trucking Corporation, Inc., (RTC) of Canton, Michigan, and owners James L. Ratliff and
Mary J. Ratliff on July 19 for failure to deposit $10,385 in employee contributions and
employee loan payments into the corporation’s profit sharing plan. |
“This lawsuit demonstrates the department’s
commitment to protect the benefits of America’s workers,” said Joseph Menez,
director of the Cincinnati regional office of the Pension and Welfare Benefits
Administration (PWBA), which investigated the case. |
Filed in federal district court in Detroit, the suit
alleges that RTC, the administrator, and James L. and Mary J. Ratliff, the
trustees of the corporation’s profit sharing plan, violated the Employee
Retirement Income Security Act (ERISA) by failing to remit employee
contributions and employee loan payments from January 1998 through August 2001,
and using the funds for their own benefit. The Ratliffs also allegedly
failed to secure a fidelity bond for almost two years. |
The suit seeks to restore to the plan all losses plus
lost opportunity costs; offset the Ratliffs’ plan accounts; permanently bar
them from serving any employee benefit plan covered under ERISA; and appoint an independent fiduciary to oversee the plan. |
Incorporated in 1976, RTC provided for the transport of
products primarily for the auto industry, with Ford Motor Company as their
primary customer. RTC operated throughout the eastern United States and
Canada through trucking terminals located in Canton, Michigan, and Nashville,
Tennessee, but closed its facilities in December 2001. It established the
profit sharing plan on January 1, 1990, and in 1998 provided benefits to 31
employees. As of August 15, 2001, the plan had assets totaling $141,891. |
Menez noted that employers with similar problems, who are
not yet the subject of an investigation by PWBA, may be eligible to participate
in the Department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the VFCP requires employers to make workers whole, but allows
them to avoid PWBA enforcement actions and civil penalties as well as any
applicable excise taxes. |
“The VFCP gives plan sponsors a way to come into
compliance with ERISA by restoring workers’ benefits while avoiding an
investigation by PWBA,” said Menez. “It protects workers’ health and
retirement benefits and allows us to focus our resources on those who seek to
avoid compliance.” |
Employers and workers can contact the Cincinnati Regional
Office at 859.578.4680 or PWBA’s Toll-Free Employee & Employer Hotline number,
1.866.275.7922, for
help with problems relating to private-sector pension and health plans. |
(Chao v. Ratliff et al
Civil Action No. 02-72960) |
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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