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Release Date: 06/05/2001
Release Number: 080
Contact Name: John M. Chavez
Phone Number: 617.565.2075
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Boston, Massachusetts - The U.S. Department of
Labor has filed suit in the U.S. District Court for Rhode Island to
recover nearly $30,000 in improper benefit payments from the trustees of
the International Brotherhood of Electrical Workers Local Union 99 Health
and Welfare Fund. |
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The suit, filed May 31, 2001, charges Board of Trustees
members Ernest W. Audet, Jr., G. Thomas Chabot, Raymond J. Lambert, James
W. Crandall, Normand L. Jodoin, Thomas J. Lynch, and John I. McGee with
violations of the Employee Retirement Income Security Act (ERISA), the
federal law that protects private employee pension and welfare benefit
plans. |
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The suit alleges that, between January 1994 and December
31, 1995, those named individuals who were trustees during that period
failed to adequately review, monitor and ensure the accuracy of employee
eligibility information which they provided to Provident Life and Accident
Insurance Company, which was serving as a third party administrator of the
health and welfare plan. Under its agreement with the plan, Provident
received and processed employee claims in accordance with the terms of the
plan. Eligible employees worked for various employers who had collective
bargaining agreements with IBEW Local Union 99. |
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The suit alleges that the plan paid approximately
$29,424.60 in medical benefits on behalf of seven employees who were
ineligible to participate in the plan, and that the trustees, aware that
benefits were paid to ineligible participants, failed to take appropriate
action to recover the monies. |
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ERISA requires that employee benefit plan assets be
used and administered solely for the benefit of the plan’s participants,
according to James Benages, regional director in Boston for the Labor
Department’s Pension and Welfare Benefits Administration, which
administers ERISA. |
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Therefore, the department’s suit seeks a court order
requiring the trustees to restore to the plan any and all losses incurred
as a result of their actions or inactions; and prohibiting them from
future violations of the law. |
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The Labor Department’s legal action followed an
investigation by the Boston Regional Office of the Pension and Welfare
Benefits Administration. That office is located in Room 575 of the John F.
Kennedy Federal Building in Boston. The telephone number is 617.565.9600. |
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(Chao v. Ernest Audet, Jr., et al
Civil Action No. 01-270-L) |
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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. |
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