Lionville, Pennsylvania Company Agrees to Restore Nearly $272,000 to Retirement Plan to Settle Labor Department Lawsuit

Archived News Release — Caution: Information may be out of date.

Lionville, Pennsylvania - The U.S. Labor Department has obtained a consent judgment that will require the Harold E. Trego Construction Company Inc., Lionville, Pennsylvania, and its president, to restore $271,652 to the company’s retirement plan. The judgment settles a lawsuit alleging violations of the Employee Retirement Income Security Act (ERISA).

The suit, filed in U.S. District Court for the Eastern District of Pennsylvania, alleged that Harold E. Trego, company president and trustee of the company’s Prevailing Wage Retirement Plan, violated ERISA when he failed to collect employer contributions owed the plan from June 1998 to the present. The plan was established in 1994 to satisfy the fringe benefit requirements the company had as a subcontractor hired by the Commonwealth of Pennsylvania. As of June 2001, the plan had 47 participants and $356,624 in assets.

“Plan fiduciaries must ensure that plans receive contributions owed to pay benefits,” said Ann L. Combs, assistant secretary of labor for Employee Benefits Security Administration. “This case demonstrates the Labor Department’s commitment to protect the benefits of America’s workers and retirees.”

Under the judgment, Trego and the company also are obligated to pay a penalty.

The suit resulted from an investigation conducted by the Philadelphia regional office of the Employee Benefits Security Administration (EBSA). Employers and workers can reach the regional office at 215.861.5300 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

(Chao v. Trego)
Civil Action No.: 06-601 Eastern District of Pennsylvania

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Archived News Release — Caution: Information may be out of date.

Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102