Labor Department Judgment Establishes "Premium Holiday" for Premark's Supplemental Life Insurance Plan Participants

Archived News Release — Caution: Information may be out of date.

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.

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.

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.

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.

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).

"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."

(Chao v. Premark International, Inc.
Civil Action No. 99 C 8489)

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Archived News Release — Caution: Information may be out of date.