Clarion, Pennsylvania Company Ordered to Restore Nearly $55,000 to Company Pension Plan

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - A federal judge has ordered Sidney Miles, president of Miles Developing and Contracting, Inc. (MDC) and MDC to restore $44,029 in assets and $10,446 in interest to the Miles Developing and Contracting Inc. Pension Plan. A U.S. Labor Department investigation found the Clarion, Pennsylvania company was not making required contributions to the plan, and Miles failed to collect those contributions, in violation of the Employee Retirement Income Security Act (ERISA).

The judgment, which resolves a Labor Department lawsuit filed March 2006, also authorizes the appointment of an independent fiduciary to manage the plan, permanently bars Miles and MDC from serving as fiduciaries to any ERISA plan, and permanently prohibits Miles and MDC from violating ERISA.

“Those who hold positions of trust for employee benefit plans must act in the best interest of the plan and those to whom it is supposed to help,” said Mabel Capolongo, regional director of the Philadelphia office of the Employee Benefits Security Administration (EBSA), who conducted the investigation. “Our action was taken to restore to the plan assets that MDC failed to contribute.”

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. Employers and workers with questions or concerns regarding their private-sector pension and health plans can contact the Labor Department’s EBSA Philadelphia office at 215.861.5300 or EBSA’s toll-free number 1.866.444.EBSA (3272). Information is also available from the agency’s Web site at www.dol.gov/ebsa.

(Chao v. Miles)
Civil Action No.: 06-0349

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Archived News Release — Caution: Information may be out of date.

Contact Name: Leni Uddyback-Fortson
Phone Number: 215.861.5102