Bay City, Mich.-based Independent Bank to restore $87,000 to 2 employee benefit plans following US Labor Department investigation

BAY CITY, Mich. – Independent Bank has agreed to restore a combined $87,000 to the Richard P. Payea M.D., P.C. Money Purchase Plan and the Richard P. Payea M.D., P.C. Profit Sharing Plan as part of the settlement of a lawsuit filed by the U.S. Department of Labor against the bank for alleged violations of the Employee Retirement Income Security Act. The bank also has been assessed $8,700 in civil money penalties.

“The Labor Department will continue to help workers obtain their rightful benefits when fiduciaries fail in their responsibilities to administer all aspects of benefit plans,” said Paul Baumann, director of the Cincinnati Regional Office of the Labor Department’s Employee Benefits Security Administration. “We are pleased that the funds will be rightfully restored to the plans.”

A consent order and judgment entered by the U.S. District Court for the Eastern District of Michigan requires Independent Bank to pay a court-appointed independent fiduciary, North American Pension Services LLC, $30,371.70 as a settlement fund for qualified participants of the profit sharing plan. In addition, the bank must provide to the independent fiduciary $56,628.30 as a settlement fund for qualified participants of the money purchase plan. North American Pension Services will make distributions of the funds to qualified participants.

EBSA protects the security of the retirement, health and other workplace-related benefits of America’s workers, retirees and their families. The agency oversees approximately 708,000 private sector retirement plans, 2.8 million health plans and a similar number of other plans that provide benefits to more than 150 million Americans. Collectively, these plans hold more than $6 trillion in assets

The investigation was conducted by EBSA’s Detroit District Office. Employers and workers can reach EBSA’s Detroit office at 313-226-7450 or toll-free at 866-444-3272 for help with problems related to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.

Solis v. Payea, Independent Bank
Civil Action Number: 08-13116

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U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.