U.S. Labor Department sues president of TSS Fabricating for mismanagement of $70,000 contributed to employee IRA plan

Archived News Release — Caution: Information may be out of date.

LaCross, Wisconsin – The U.S. Department of Labor has sued Karen Hoeppner, former president of TSS Fabricating, and the TSS Fabricating SIMPLE IRA plan, for failing to timely remit $70,000 in employee contributions to the company’s savings incentive match plan for employees individual retirement account plan, and to segregate contributions from the company’s general operating assets.

“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 Steve Haugen, director of the department’s Employee Benefits Security Administration (EBSA) Chicago Regional Office.

The lawsuit alleges that Hoeppner, a fiduciary of the plan, violated the Employee Retirement Income Security Act by failing to remit to the plan $24,957, timely forward $45,043, and segregate employee contributions owed to the plan even though assets were deducted from workers’ paychecks.

The suit seeks to require Hoeppner to restore to the plan all contributions plus interest, remove her as plan fiduciary and correct any prohibited transactions. The suit also seeks to appoint an independent fiduciary to manage the plan, terminate it and distribute assets to eligible participants and beneficiaries.

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

Employers and workers can reach EBSA’s Chicago Regional Office at 312.353.0900 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Hoeppner
Civil Action Number 07-C-0322-S

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Archived News Release — Caution: Information may be out of date.