Compliance February 7, 2012

DoL Sues Company for Failure to Remit Contributions

February 7, 2012 (PLANSPONSOR.com) – The U.S. Department of Labor (DoL) filed a lawsuit against Towson Rehabilitation Center LLC and CEO Howard Neels for failing to remit employees’ contributions to the company’s 401(k) plan. 

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The suit resulted from an investigation by the Washington District Office of the DoL’s Employee Benefits Security Administration (EBSA), which found that, since January 2006, the defendants have failed to remit employee contributions to the plan, remitted certain employee contributions late without interest and failed to segregate the plan’s assets from the general assets of the company.

“This case clearly demonstrates a breach of fiduciary duty,” said Norman Jackson, EBSA’s acting regional director in Philadelphia. “We will hold fiduciaries accountable when they fail to act in the best interest of plan participants.” 

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Filed in the U.S. District Court for the District of Maryland, the suit seeks to restore to the plan all losses, including interest and opportunity costs, as well as the cost of an independent fiduciary. The suit also seeks to permanently bar the defendants from serving in a fiduciary capacity to any employee benefit plan covered by ERISA, and appoint an independent fiduciary with plenary authority and control with respect to the management and administration of the plan.

The case is Solis v. Towson Rehabilitation Center LLC et al.
No: 1:12-cv-00117-JKB.

Benefits February 7, 2012

Workers Globally Expect to Work Past Retirement Age

February 7, 2012 (PLANSPONSOR.com) – Over half of Canadian employees expect to keep working beyond their official retirement age.
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According to Randstad’s latest Global Workmonitor, 52% of Canadian workers anticipate working beyond the age of retirement, and nearly half say they’d be happy to work for an additional two years beyond the official retirement age, a percentage that is even higher in the U.S. (59%). Just 32% of Canadian workers report they expect to stop working before they reach retirement age.

In most countries, the same sentiment is shared. In India, Mexico, Singapore and the U.S., more than 70% of employees say they expect to work past retirement. Similarly, in India and Singapore, more than 75% of workers say they would be happy to work two years beyond retirement. In France, Germany, Luxembourg, the Netherlands, Spain and Switzerland, however, employees are less inclined to work beyond their retirement age: less than 30% say they’d be happy to work beyond the age of retirement.

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Jan Hein Bax, president, Randstad Canada said the aging population will have a significant impact on the local workforce, and that employee willingness to work beyond the official retirement age should come as a relief to many employers. “In the context of the imminent skills shortage, this trend may be a win-win situation for both employees and organizations. It is an opportunity for employers to tap into a pool of highly experienced and skilled workers who can also act as mentors for the younger generations of workers,” he said.

For a complete report, including detailed regional differences, is available at http://www.randstad.com/press-room/research-reports. 

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