Labor Department Settles Suit Against Craig, Colorado Plan Trustee For Failure to Remit Employee Contributions

Archived News Release — Caution: Information may be out of date.

Kansas City, Missouri - The trustee of the Health Care Services, Inc. 401(k) profit sharing plan in Craig. Colorado, agreed to pay $5,135.83 plus interest to six participants of the plan, under terms of a judgment entered on March 5. The original suit was filed by the U.S. Department of Labor on August 31, 2001 in federal district court in Colorado. Under the terms of the consent decree, the profit sharing plan will be terminated and any other remaining funds distributed to participants.

"This action reaffirms our commitment to protect the hard-earned benefits promised to employees," said Gregory Egan, director of the department’s Kansas City Regional Office of the Pension and Welfare Benefits Administration, which investigated alleged violations of the Employee Retirement Income Security Act.

In its lawsuit, the department alleged that trustee Neil E. Hansen failed:

• To transfer 401(k) contributions withheld from employees’ wages between 1996 and 1998
• To file annual reports required by law for 1996 and 1998
• To file a report upon the plan’s termination

Employers and workers can contact the Toll-Free Employee & Employee Hotline at 1.866.275.7922 for help with any problems relating to private-sector pension and health plans.

(Chao v. Hansen
Civil Action No. 01-1727)

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Archived News Release — Caution: Information may be out of date.