Compliance October 11, 2019

Court Orders ESOP Fiduciary to Complete Fiduciary Training

This is in addition to $454,545 in restitution to the plan, paid by the company and its employee stock ownership plan fiduciaries, for causing the plan to pay more than fair value for stock purchases.

Reported by

The U.S. District Court for the Eastern District of Tennessee has approved a settlement between the U.S. Department of Labor (DOL) and Big G Express Inc., Stephen Thompson, and David Nolan involving the company’s employee stock ownership plan (ESOP).

In accordance with the consent judgment, Big G Express—a Shelbyville, Tennessee-based trucking company—paid $454,545 in restitution to the plan. The Department also assessed a civil penalty of $45,454 against the defendants. 

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

In addition to the reimbursement to the ESOP, the court ordered Thompson, the ESOP’s former trustee, to be enjoined permanently and restrained from serving as a fiduciary, trustee or service provider to any Employee Retirement Income Security Act (ERISA) plan. The court also ordered Nolan, Big G Express’s chief financial officer, to complete 12 hours of fiduciary training within 12 months of his appointment as a fiduciary or service provider to any employee benefit plan.

The court’s action follows an investigation by the DOL’s Employee Benefits Security Administration (EBSA) which found that in October 2009, both Thompson and Nolan—acting as fiduciaries for the ESOP—caused the plan to pay more than fair market value when it purchased Big G Express common stock from Nolan and other shareholders.

The judgment also orders that Big G Express Inc., Thompson, and Nolan not seek direct or indirect contribution or indemnification from the ESOP either to pay the judgment or to pay its legal expenses.
Products October 11, 2019

Platform Integrates Consumer Accounts Employee Benefits

Both employers and employees can manage consumer accounts benefits, such as HSAs, FSAs and gym reimbursements, with one tool.

Reported by

Businessolver, a provider of software-as-a-service (SaaS)-based benefits administration technology and services, launched what it says is the first fully integrated consumer accounts benefits platform within the HR and benefits industry—MyChoice Accounts.

The platform allows employees to manage all of their benefits, including consumer accounts, such as health savings accounts (HSAs), flexible spending accounts (FSA), commuter benefits, fitness reimbursements and more from one holistic technology platform, Benefitsolver. Employees can enroll in these benefits year-round, and within the same system and mobile app they can submit claims, check balances, view employer contributions and more.

Get more!  Sign up for PLANSPONSOR newsletters.

Users are issued just one debit card, which can be used for purchases from multiple consumer accounts. It automatically deducts from the relevant account based on the purchase. Submitted claims are processed in real-time.

With the solution, employees have continued access to the MyChoice Recommendation Engine and Businessolver’s AI-powered personal benefits assistant, Sofia, ensuring they have the information and guidance they need to make informed choices and continually engage with their benefits in one place throughout the year.

For employers, the platform removes the need to manage multiple systems and vendors for employees’ consumer accounts. It provides simplified funding and financial reconciliation, and it streamlines the payroll deduction process as well as reporting, since it features automated data exchange.

The solution improves data security because all data remains within the Benefitsolver platform. And, opening HSAs is simplified and streamlined, vastly reducing the need to reconcile accounts after elections have been made.

To make this experience possible, Businessolver has partnered with UMB Bank as its custodial banking partner.

More information can be obtained from the Businessolver website.

«