U.S. Department of Labor sues to install independent fiduciary on behalf of former employees of Versailles, Kentucky, hospital

Archived News Release — Caution: Information may be out of date.

Fort Wright, Kentucky – The U.S. Department of Labor has filed a lawsuit in the U.S. District Court for the Eastern District of Kentucky to remove Woodford Memorial Hospital Inc. as the fiduciary of the hospital’s retirement and thrift plan.

“The former employees of this hospital are the rightful owners of the plan’s assets. When a company fails in its fiduciary responsibilities, the Labor Department will step in to protect those workers’ rights,” said Joseph Menez, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA), which investigated this case.

The suit alleges that the Versailles, Kentucky, hospital failed to authorize distribution of the plan’s assets after the hospital ceased operations in February 2000. Since that time, no individual or entity has taken fiduciary responsibility for the operation and administration of the plan, which has not been formally terminated.

The suit seeks a court order to remove the defendant from its position as fiduciary and the appointment of an independent fiduciary to administer the plan and effect its termination with the goal of distributing assets to participants and beneficiaries.

In September 2007, the plan had 31 participants and funds totaling $187,657, the latest data available.

Employers and workers can reach EBSA’s Cincinnati Regional Office at 859-78-.680 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Woodford Memorial Hospital Inc.
Civil Action Number 5:08-21-KSF

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Archived News Release — Caution: Information may be out of date.