DOL Says Government Contractor Failed to Make 401(k) Contributions

The U.S. Department of Labor (DOL) filed a complaint alleging that Tarry Bratton, B.C. Inc. and the B.C. Inc. 401(k) Profit Sharing Plan violated the Employee Retirement Income Security Act (ERISA) by not collecting employer contributions required by government contracts to the company’s plan.

According to the complaint, Tarry Bratton, president and sole owner of the company, was the plan’s trustee and a plan fiduciary. The company established the plan in October 2004, and it required that the company make contributions equal to the amount of fringe benefits paid under various prevailing-wage contracts, pursuant to the Davis-Bacon Act.

However, from January 2009 to July 2012, Bratton and the company failed to remit mandatory employer contributions to the plan. The complaint says Bratton and the company could have successfully collected the contributions at the time they were due because the funds were available and the financial health of the company was good at the time.

The complaint also accuses Bratton and the company of causing each other to commit fiduciary breaches and knowingly not taking reasonable efforts to remedy each other’s breaches.

The DOL is seeking restoration of the unremitted employer contributions, with lost earnings, totaling approximately $249,989 as of June 5, 2015.