|
|
|
Release Date: 04/03/2001
Release
Number: V-369
Contact Name: Gloria Della
Phone Number: 202.219.8921 |
|
|
|
Executives of the Atols Tool & Mold Corp.,
located in Schiller Park, Illinois, agreed to repay $4,889.34 to the company’s
cafeteria plans to benefit the company, under a consent order and judgment
obtained March 30, 2001 by the U.S. Department of Labor. |
|
The judgment also permanently bars defendants
James Atols and Robert Atols from serving in positions of trust to any plan
governed by the Employee Retirement Income Security Act (ERISA) and requires
them to terminate the plan and distribute its assets to eligible participants.
Under a related settlement, the defendants agreed to repay $173,346.08 to the
cafeteria and pension plan sponsored by the company. |
|
The Labor Department sued the defendants on
November
14, 2000 for violating their duties as members of the pension plan’s
administrative committee and as fiduciaries of the cafeteria plan. According to
the lawsuit, the defendants violated the Employee Retirement Income Security
Act (ERISA) when they:
-
Failed to timely deposit employee contributions and loan
repayments into the pension plan’s accounts at various times during
February 1997 to April 2000
-
Retained employee contributions and loan repayments with the
general assets of the corporation
-
Failed to pay $3,055 in participant claims with respect to the
cafeteria plan despite collecting $6,666.84 in employee contributions for the
period January through May 2000
-
Caused Atols Tool to retain employee contributions owed to the
cafeteria plan in the general assets of the corporation without paying
reimbursement claims.
|
|
The Atols Tool & Mold Corporation pension plan
provides retirement benefits to 78 participants and had assets of
$6,319,571 as of December 31, 1998. The cafeteria plan, which covered many of
the same participants, was established in 1990 to provide medical and dependent
care reimbursement accounts that are funded solely through employee
contributions. |
|
“This case exemplified our commitment to
protect the benefits promised to employees," said Ken Bazar, director of the
Chicago Regional Office of the Labor Department’s Pension and Welfare
Benefits Administration (PWBA). “Employers and workers can reach us at
312.353.0900 for help with any problems relating to private-sector pension
and health plans.” |
|
The judgment, entered in federal district court
for the Northern District of Illinois in Chicago, resulted from an
investigation conducted by the Chicago Regional Office of the department's
Pension and Welfare Benefits Administration into alleged violations of
ERISA. |
|
(Herman v. Atols
Civil Action No.
00C-7157) |
|
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. |
