Labor Department Legal Action Restores Delinquent Contributions to Toledo Company’s Pension Plan

Archived News Release — Caution: Information may be out of date.

Cincinnati, Ohio - The U.S. Department of Labor has recovered $42,372.21 in employee contributions that were deducted from workers’ pay at A.C. Leadbetter & Sons Inc., Toledo, Ohio, but were never forwarded to the company’s pension plan. The figure includes $4,089.21 in interest on the delinquent contributions.

James M. Leadbetter, owner of the business and fiduciary of the pension plan, agreed to a judgment issued in federal district court in Toledo that requires him to pay the illegally withheld contributions plus interest to the pension plan. The action resolves a lawsuit filed by the department, alleging Leadbetter failed to forward the workers’ pension deductions to the plan from February 2003 through April 2004, in violation of the Employee Retirement Income Security Act.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph Menez, director of the department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to correct violations of the law but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP, see www.dol.gov/ebsa.

The legal actions resulted from an investigation conducted by EBSA’s Cincinnati regional office. Employers and workers can reach the Cincinnati regional office at 859.578.4680 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. In fiscal year 2005, EBSA achieved record monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. A.C. Leadbetter & Sons Inc.)
Civil Action No. 3:05-cv-07231-JGC

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976