Here’s proof the Department of Labor won’t play nice with those who fail to abide by its reporting rules.
Recently, a DOL judge ordered Airport Hospitality, LTD., to pay $86,500 for violating the annual reporting requirements of the Employee Retirement Income Security Act (ERISA).
Airport Hospitality’s plan administrator failed to file a complete and accurate Form 5500 annual return/report for the 2004 plan year, according to the DOL. More specifically, the administrator failed to attach “an acceptable independent qualified accountant’s opinion and a schedule of assets held for investments.”
The DOL issued the company a notice that said it had to resubmit a proper Form 5500 or “show cause why the penalty shouldn’t be assessed.”
But the company failed to do so and challenged the penalty — citing that it had gone bankrupt and lost personnel and pension records when it sold off several business locations.
Too bad, said the DOL judge, who upheld the fine against the company.
According to the judge’s decision, the reporting requirements are meant to protect the rights of the employees whose money is being held by the plan. And despite the company’s bankruptcy and apologies, it failed to protect those rights for its employees.
Case closed, the company pays.
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