U.S. Department of Labor obtains judgment appointing independent fiduciary for Versailles, Kentucky hospital’s retirement and thrift plan

Archived News Release — Caution: Information may be out of date.

Cincinnati – The U.S. Department of Labor has obtained a default judgment against Woodford Memorial Hospital Inc. of Versailles, Kentucky, removing the hospital as fiduciary of its retirement and thrift plan, and appointing an independent fiduciary to oversee the collection, management and liquidation of assets for the benefit of the plan’s participants.

As of this month, the plan has 29 participants and funds totaling $174,153.

“This judgment is a victory for the former employees of the hospital who are counting on these assets for their future retirement,” said Joseph Menez, director of the Cincinnati Regional Office of the department’s Employee Benefits Security Administration (EBSA), which investigated the case.

The judgment, entered in the U.S. District Court for the Eastern District of Kentucky, resulted from a Labor Department lawsuit that alleged the hospital failed to authorize distribution of the plan’s assets after the hospital ceased operations in February 2000. Since that time, no successor fiduciary has taken responsibility for the operation and administration of the plan, which has not been formally terminated.

Employers and workers can reach EBSA’s Cincinnati Regional Office at 859.578.4680 or toll-free at 866.444.3272 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. For more information, see www.dol.gov/ebsa.

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

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Archived News Release — Caution: Information may be out of date.