U.S. Labor Department Obtains Settlement to Restore Funds to Lincolnwood, Illinois, Profit Sharing Plan

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has obtained a settlement requiring that $7,663.88 be paid to the participants and beneficiaries of the Mid-Continent Screw Products Profit Sharing Plan. Judith Hirsch, president of the Lincolnwood, Illinois-based plan, will be handling distribution of the assets to individuals entitled to benefits under the Employee Retirement Income Security Act (ERISA).

“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 Kenneth Bazar, director of the department’s Chicago regional office of the Employee Benefits Security Administration (EBSA).

The settlement resolves a lawsuit filed by the Labor Department, alleging that Hirsch withheld contributions from employees’ pay but failed to remit those contributions to the profit sharing plan in December 2002.

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 any violations but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP, visit www.dol.gov/ebsa.

The suit resulted from an investigation conducted by the Chicago regional office of EBSA. Employers and workers can contact the Chicago office at 312.353.0900 or 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 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. Hirsch
Civil Action No. 05 C 6242

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976