U.S. Labor Department Obtains Court Approval of Settlement Restoring $2.2 Million to Leading Transportation Systems Retirement Plan

Source: U.S. Department of Labor (DOL)

The U.S. Department of Labor and a Troy, Mich.-based global supplier of mobile electronics and transportation systems have obtained approval of settlement by the U.S. bankruptcy court in New York that allows the government to recover more than $2.2 million in retirement plan assets owed to the company’s personal savings plan for hourly employees in the United States.

"This settlement will ensure that assets are available to pay future retirement benefits for these workers," said Secretary of Labor Elaine L. Chao.

The bankruptcy settlement resolves a claim brought by the Labor Department on July 31, 2006, seeking to restore assets to the savings plan lost as a result of investment activities. The claim and settlement resulted from an investigation by the department's Employee Benefits Security Administration (EBSA) into improperly invested dividends the company failed to properly disclose or correct. Between 2000 and 2003, dividends were improperly invested in a notable stock, rather than in an income fund as required by the company’s savings plan.

The investigation was conducted by the Detroit District Office of EBSA's Cincinnati region. Employers and workers can reach the 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.