Enforcement Manual
Enforcement Manual
CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Mr. X, Trustee
Profit Sharing Plan
Main Street
Anytown, USA
RE: Notice of Assessment of ERISA Section 502(l)
Civil Penalty in the Matter of the Plan
PWBA Case No. XX-XXXXX
Dear Mr. X:
The Department of Labor (the Department) has responsibility for the enforcement of Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Title I establishes standards governing the operation of employee benefit plans such as the Plan (the Plan).
This office has concluded its investigation of the Plan and of your activities as Trustee. Based on the facts gathered during that investigation we concluded that, as Trustee, you violated your fiduciary obligations to the Plan and violated several provisions of ERISA. The specific actions taken by you that violated ERISA were detailed in the Complaint filed January 31, 1992 against you and the Board of Directors in Federal District Court (1st Circuit), Secretary v.__________, et al, Docket #_____together with a Consent Judgment between the parties entered into by the Court on ___ , 199_____
The terms of the Consent Judgment require that you correct the ERISA violations and restore losses to the plan exclusive of the mandatory section 502(l) civil penalty to be assessed by the Secretary of Labor. Based upon the report of Mr. Y, the court approved independent party, we understand that you have complied with the above requirements. Among other things, you . . . (list corrective actions taken).
Since you have taken the Court-ordered corrective action with respect to the specific violations detailed in the Consent Judgment, the Department will take no further action with respect to these matters except the imposition of the civil penalty, as required by ERISA section 502(l), in accordance with the Agreement signed by you on _________
We have determined that the applicable recovery amount is $14,452.06, paid on ___________ , representing the loss to current participants. Therefore, based on the authority granted to the Secretary under section 502(l) of ERISA and the regulations thereunder, PWBA is assessing a civil penalty of $2,890.41 against you.
The payment should be remitted by check or money order in the amount of $2,890.41 payable to the United States Department of Labor. The check should be mailed to the following address.
U.S. Department of Labor
ERISA Civil Penalty Collections
P.O. Box 100240
Atlanta, Georgia 30384-0240
To ensure correct processing of this payment and final disposition of this case, please include the PWBA Case Number (listed at the top of this letter) on the front of your check, as well as a copy of this letter. You should also provide me with copies of the canceled check and this letter in order to document that you have paid the civil penalty so that we may close our case.
[Please also be advised that pursuant to section 3003(c) of ERISA, the Secretary of Labor is required to transmit to the Secretary of the Treasury information indicating that a prohibited transaction has occurred. Accordingly, this matter will also be referred to the Internal Revenue Service. The penalty assessed under ERISA section 502(l) will be reduced by the amount of any tax imposed with respect to such transaction under section 4975 of the Internal Revenue Code.]*/
Sincerely,
Regional Director
Enclosures: Consent Judgment dated______by the Court
Agreement dated ____________
bcc: OE, OPPEM
*/ Include language in brackets when addressee is or represents the disqualified person involved in the prohibited transaction.