Washington, D.C. Mental Health Center To Make Contributions To Pension Plan

Archived News Release — Caution: Information may be out of date.

The Center for Mental Health, Inc., in Washington, D.C., agreed to restore $226,932 in mandatory contributions, plus lost interest, owed to two pension plans sponsored by the Center, as part of a consent order obtained by the U.S. Department of Labor. The consent order was filed on June 13.

Besides the restitution, the consent order permanently bars the Center from violating provisions of federal pension law in the future.

The Center is a non-profit organization which provides mental health services to residents of the District of Columbia. The two pension plans, the DC Institute of Mental Hygiene Annuity Plan and Money Purchase Plan (the plans), covered as many as 48 employees and had assets of $159,000 as of December 1998. The Center was required to contribute three percent of each employee’s salary to the plans.

The Labor Department filed a lawsuit on June 8, alleging that the Center violated the Employee Retirement Income Security Act (ERISA). According to the lawsuit, the Center failed to collect $226,932 plus interest in mandatory contributions owed to the plans and did not take steps to collect the outstanding contributions.

This case resulted from an investigation conducted by the Washington District Office of the Labor Department’s Pension and Welfare Benefits Administration into alleged violations of ERISA.

Mabel Capalongo, PWBA Regional Director for Philadelphia, said, “This case reaffirms our commitment to protect the hard-earned benefits of workers against abuse. Workers can help us protect plan benefits by contacting our office at 202-254-7013 about any suspected abuse of their pension, health or other benefit plans.”

(Herman v. The Center for Mental Health, Inc.)
Civil Action No. CV 01341

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.

Archived News Release — Caution: Information may be out of date.