Labor Department Makes Recovery For Iowa Simple Retirement Arrangement

Archived News Release — Caution: Information may be out of date.

The U. S. Department of Labor today announced that a federal court in Des Moines, Iowa has entered a judgment restoring $2,587.33 to employees of State Wide Metal Recycling, Inc. of Des Moines, Iowa or their individual retirement accounts.

Under the judgment, the money will be distributed directly to three employees or to their individual accounts with the company’s Savings Incentive Match Plan for Employees of Small Employers (Simple) IRA.

The Labor Department filed a lawsuit on June 7, 2000, alleging that Fred Bovee violated the Employee Retirement Income Security Act (ERISA). The lawsuit alleged that Bovee failed to assure that $2,155.76 in contributions withheld from the employees’ paychecks were deposited into the plan.

State Wide Metal Recycling was engaged in the business of processing scrap metal. The plan, which originally covered five participants, allows for elective salary deferral of wages by employees.

"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 Greg 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."

The judgment was entered on Dec. 4 in federal district court in Des Moines. This case resulted from an investigation conducted by the Kansas City Regional Office of PWBA into alleged violations of ERISA.

(Herman v. Bovee)

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Archived News Release — Caution: Information may be out of date.