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Release Date: 07/08/2002
Release Number: 277
Contact Name: Gloria Della
Phone Number: 202.693.8666
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Kansas City, Missouri - The U. S. Department of Labor sued British Landscapes, Ltd. of
Roseville, Minnesota and Charles M. Glossop, trustee of the British Landscapes, Ltd.
401(k) Plan, to recover $3,850.51 in employee contributions and interest
resulting from their failure to remit employee contributions to the plan. |
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“This action reaffirms our commitment to protect the hard-earned benefits
promised by employers,” said Gregory P. Egan, Director of the Kansas City
Regional Office of the Pension and Welfare Benefits Administration (PWBA). |
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British Landscapes and Glossop allegedly violated the Employee Retirement
Income Security Act (ERISA) when they failed to deposit all employee
contributions owed to the plan from January 28, 2000 to September 15, 2000.
According to the suit, the defendants failed to remit to the plan $14,298.78 in
voluntary salary reduction contributions withheld from employees’ wages.
On December 19, 2001, Glossop forwarded $11,019.48 to the plan’s third party
administrator as partial payment of the amounts due. The defendants also
failed to obtain a fidelity bond as required by ERISA. |
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The suit seeks a court order to require the defendants to restore withheld
employee contributions to the plan plus interest and to disgorge any profits
resulting from the alleged violations. The suit also seeks to permanently
bar him from serving as a fiduciary to any plan governed by ERISA. |
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Egan 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 government excise taxes. |
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“The VFCP program gives plan sponsors a way to come into compliance with
ERISA by restoring workers’ benefits while avoiding an investigation by the
government," said Egan. "It protects workers’ health and retirement
benefits and allows us to focus our resources on those who seek to avoid
compliance.” |
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This suit, filed in federal district court in Minneapolis,
Minnesota on June 27,
2002, resulted from an investigation conducted by PWBA’s Kansas City Regional
Office. Employers and workers can contact the regional office at 816.426.5131 or PWBA’s
Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help with any
problems relating to private-sector pension and health plans. |
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(Chao v. British
Landscapes, Ltd.
Civil Action No. 02-1380-MJD/JGL) |
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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. |
