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Release Date: 11/28/2001
Release
Number: V- 57
Contact Name: Gloria Della
Phone Number: 202.693.8666 |
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Cincinnati, Ohio - The U. S. Department of
Labor obtained a consent order on November 27, requiring trustees of the SCA
Holding Inc. sponsored 401(k) plan in Ishpeming, Michigan, to pay $65,297.29 in
employer contributions to the plan and losses on delinquent employee
contributions and loan repayments. The defendants already repaid $111,120.71 to
the plan for delinquent employee contributions. |
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Defendant Darryl L. Sundberg agreed to resign
immediately as a plan trustee and defendant Michael J. Pond will remain as
trustee in order to terminate the plan. Sundberg and Pond cannot serve in
positions of trust to any plan governed by the Employee Retirement Income
Security Act (ERISA) in the future. The trustees also were owners and officers
of SCA Holding. |
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The consent order resolves a suit, filed on
in federal district court in Grand Rapids, Michigan, alleging that the
trustees and corporations violated ERISA by failing to forward or timely
transmit to the plan employee contributions deducted from paychecks during the
period January 1, 1999 to November 17, 2000. The suit also alleges that defendants
failed to timely forward employee loan repayments made to the plan. |
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SCA Holding is a survey and engineering firm,
which sponsored the 401(k) plan for its employees and those of affiliates
Sundberg Carlson and Associates, Inc. and SCAcomputers.com. As of
December 31,
2000, the plan covered 82 participants and had $2,699,120 in assets. |
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This case resulted from an investigation conducted
by the Cincinnati Regional Office of the Pension and Welfare Benefits
Administration (PWBA). According to PWBA regional director Joseph Menez,
“This case exemplifies our commitment to protect workers’ hard-earned
benefits. Workers can help us protect their benefits by contacting our office
at 859.578.4680 if they have questions or suspect abuse of their pension,
health or other benefit plans.” |
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(Chao v. SCA Holding, Inc.
Civil Action No.
2:01CV195) |
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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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