A federal judge has ordered the president of Clark Graphics, a Ohio printing firm, to restore $505,551 to the company’s pension and profit sharing plans to resolve a lawsuit filed by the U.S. Department of Labor (DOL). The president of Pension Retirement Planning, who administered the plans, has also been ordered to restore funds to both plans.
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Get Your Report Now!According to DOL’s lawsuit, the plan administrator failed to account for more than $326,147 transferred into the profit sharing trust fund and $110,174 transferred into the pension trust fund between 2000 and 2009. The administrator also failed to maintain accurate records and awarded incorrect benefits to some participants, the DOL charged. Including interest, the administrator has been ordered to restore $568,383 into the funds, less any payments made by company’s president.
The DOL charged the president of Clark Graphics with failing to monitor the plan administrator, including neglecting to review trust account statements; failing to review distribution calculations; and failing to ensure that participants received statements.
“Employers that sponsor retirement plans have a fiduciary duty to monitor plan assets and ensure they are handled appropriately and protected,” said U.S. Assistant Secretary of Labor for Employee Benefits Security Phyllis Borzi. “Contracting with an outside firm to manage those assets does not absolve them of their legal responsibilities.”