Defunct 401(k) Plan to Restore Plan Benefits

The U.S. Department of Labor obtained court judgments ordering that $97,317 in benefits be restored to the 401(k) retirement fund of now-defunct Triangle Laboratories.

A lawsuit filed in the U.S. District Court for the Middle District of North Carolina alleged that Joseph Morales and four other defendants failed to discharge their fiduciary duties to the 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA), according to the Durham Herald-Sun. The environmental and pharmaceutical testing services company filed for bankruptcy in 2004, and in March 2008, the court appointed an independent fiduciary to oversee the plan’s assets.

Following trial, the court ordered Joseph Morales to restore $54,317.49 to the retirement fund, the news report said. In separate judgments, defendant Donald Harvan was required to restore $25,000 to the plan, and Debbie Monaghan and Craig Stoke were ordered to restore $9,000 to the 401(k) plan.

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In addition, all of the defendants are barred in the future from serving as fiduciaries to any employee benefit plan governed by ERISA.

Private College in Georgia Cuts 403(b) Match

Covenant College in Georgia ceased making matching contributions to employees' 403(b) retirement accounts.

Officials also announced that the college will institute layoffs and a pay freeze as its endowment suffered a 25% loss in the last year, The Chattanoogan reported. Any increase in health care premiums in the coming year will be borne by employees, the school said.

In addition, the Presbyterian-affiliated college announced there will be no raises for any faculty or staff, except those minimal raises (less than 1% of salary) mandated by contract, and all senior administrators have taken a voluntary reduction in compensation.

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“These adjustments are as distressing as they are necessary. It is important to us that in this process we are honoring all contracts,” said Covenant president Niel Nielson.

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