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Release Date: 12/27/2001
Release Number: V-97
Contact Name: Sharon Morrissey
Phone Number: 202.693.8668
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Chicago, Illinois - Premark International Inc.
of Deerfield, Illinois was ordered by a federal district court today to
provide supplemental life insurance coverage under its group health plan
at no cost to eligible participants as part of a settlement of a U.S.
Department of Labor lawsuit. |
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The premium holiday will remain in effect until
the company expends $636,363.64 for the coverage. Participants eligible
for the benefit are employees of Premark and its subsidiaries as outlined
in the court documents. |
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The department's suit named officers James C. Coleman,
L. John Fletcher, Robert W. Hoaglund, Lawrence B. Skatoff and John M.
Costigan, who were members of the management committee for employee
benefits. The defendants allegedly collected excess contributions from
participating employees for supplemental life insurance from January 1,
1992 to December 31, 1995. The suit alleged those excess amounts reverted
to the company's group benefit trust. |
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The lawsuit also alleged that the company did not
monitor the actions of the management committee in its handling of the
supplemental plan nor did it require an accounting to determine the cost
of providing coverage on a yearly basis. |
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The department’s Chicago Regional Office of the
Pension and Welfare Benefits Administration conducted the investigation
into alleged violations of the Employee Retirement Income Security Act (ERISA). |
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"Our action reaffirms the department's commitment
to protect the benefits promised by employers," said Kenneth Bazar,
Chicago's regional director. "Employers and workers can reach us at
312.353.0900 for help with problems involving private sector pension and
health plans." |
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(Chao v. Premark International, Inc.
Civil Action No. 99 C 8489) |
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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. |
