Compliance May 14, 2018

Court Orders Former Lighting Company Owner to Pay Back Profit Sharing Plan

An investigation conducted by the DOL found the past trustee had issued checks from the plan’s checking account to the House of Lights, himself and others for $1,308,862, which violated ERISA, for over two years.

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The U.S. District Court for the Eastern District of North Carolina has ordered the former owner of House of Lights Inc. to pay a restitution of more than $1 million to the company’s profit-sharing plan, after it was found he had issued checks for purposes prohibited under the Employee Retirement Income Security Act (ERISA).

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Thomas E. Beverly Sr., who also served as the plan administrator and trustee to the company, will have to pay $1,639,983 restitution to the plan—which includes lost earnings of $331,121—and is ordered to hire a successor fiduciary who will take care of the restitution towards plan beneficiaries. According to the court, Beverly will have to issue the restitution by September 15.

In an investigation by the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA), it was found that Beverly had issued checks from the plan’s checking account to the House of Lights, himself and others for $1,308,862, which violated ERISA, from November 2011 to January 2014. The House of Lights Inc. Pension Plans & Trust had merged with the House of Lights Inc. Profit-Sharing Plan back in October 2010.

Beverly disclosed that some of the checks issued had gone towards payments for company-owned and personal properties. In addition to the restitution charge, Beverly is permanently prohibited from violating provisions of Title I of ERISA, and from serving as a fiduciary, trustee, agent or representative to an employee benefit plan.

Products May 14, 2018

Securian Introduces Retirement Plan for Small Employers

While ReadyPlan is designed for small employers, Securian’s new ERISA 3(16) fiduciary service is available to employers of all sizes utilizing any of Securian’s retirement plan products, including defined benefit (DB) plans.

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Securian Financial Group introduced “ReadyPlan,” which it says iis a stress-free, fiduciary-friendly way for small employers to provide retirement plans to their workers.

ReadyPlan is easy to manage, offers a streamlined investment process and supports the ability of employees to save for a comfortable retirement, the firm says.

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Features include:

  • An Employee Retirement Income Security Act (ERISA) 3(16) fiduciary service that transfers time-consuming administrative tasks to Securian;
  • An ERISA 3(38) investment fiduciary service provided by third party investment experts that take on the responsibility for managing the plan’s investments;
  • High-touch customer service from Securian retirement plan specialists; and
  • A relevant and targeted employee experience, from enrollment through retirement.

“ReadyPlan incorporates the key features of an effective plan while transferring the majority of the work to retirement specialists—making it easy for employers to stay focused on running their business,” says Rick Ayers, Securian’s retirement plans division vice president.

“For advisers, whether you have multiple plans or are new to the business, ReadyPlan’s simplicity means reduced time commitment and the potential for increased operational efficiency,” adds Steve Chappell, Securian’s vice president of retirement plan sales.

While ReadyPlan is designed for small employers, Securian’s new ERISA 3(16) fiduciary service is available to employers of all sizes utilizing any of Securian’s retirement plan products, including defined benefit (DB) plans.

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