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Release Date: 10/01/2001
Release
Number: V-001
Contact Name: Rita Ford
Phone Number: 202.219.8921 |
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Kansas City, Missouri - A defunct printing
corporation in Decatur, Illinois, a related printing firm and their owner were
ordered to repay $15,000 to the participants of the corporations’ 401(k)
plans in a consent judgment and order obtained on September 27 by the U.S.
Department of Labor. |
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Kowa Printing Corporation, Huston-Patterson Corp.,
and their owner Thomas W. Kowa were ordered to distribute the money, which
covers the principal and lost opportunity costs, to the accounts of the
participants in the Kowa Group Retirement Savings Plan for Union Employees and
the Kowa Group Retirement Savings Plan. They were also ordered to provide the
department with satisfactory proof of payment to the plans, and to offer
terminated Kowa Printing employees the opportunity to either roll over or
receive a distribution of their plan accounts. |
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The two prototype 401(k) plans covered employees
of three related printing employers known as the Kowa Group. These included
Kowa Printing, Huston-Patterson Corp. and Sigma Graphics, Inc. The Kowa
Printing Corporation was recently dissolved. |
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The action was the result of a lawsuit filed by
the department against the defendants alleging they violated the Employee
Retirement Income Security Act (ERISA) by failing to remit employee
contributions to the plans. According to the lawsuit, the defendants failed to
remit voluntary contributions withheld from employees’ paychecks from
March 1, 1998, to April 16, 1998, to the plans’ investment
accounts. |
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"Our goal is to assure that consumers know that
the department is only a phone call away to help protect the benefits promised
by employers," said Gregory Egan, director of the Kansas City Regional Office
of the department's Pension and Welfare Benefits Administration (PWBA).
"Employers and workers can reach us at 816.426.5131 for help with any
problems relating to private-sector pension and health plans." |
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The consent order and judgment was entered in the
federal district court in Urbana, Illinois. This case resulted from an investigation
conducted by the Kansas City Regional Office of PWBA into alleged violations of
ERISA. |
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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. |
