Compliance

DOL Seeks Losses from Plans Failing to Remit Contributions

By Rebecca Moore editors@plansponsor.com | April 04, 2014
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April 4, 2014 (PLANSPONSOR.com) – The U.S. Department of Labor (DOL) has filed a lawsuit to recover losses to the Cargill Heating & Air Conditioning Co. Inc. Savings Plan in La Crosse, Wisconsin.

According to the DOL, Michael Earl Galstad was president and majority owner of Cargill Heating & Air Conditioning Co. and failed to remit $27,812.90 in employee contributions to the plan from June 25, 2009, to April 12, 2012. The contributions remained in the company’s general funds for its use. Galstad restored $23,657.86 in unremitted employee contributions to the plan; however, $4,155.04 in employee contributions remains outstanding.

Additionally, pursuant to several state and federal contracts subject to the Davis Bacon Act, Service Contract Act, or state prevailing-wage laws, Cargill and Galstad agreed to pay employer contributions as prevailing-wage fringe benefits to the plan. Between June 30, 2009, and April 30, 2012, $236,738.12 in prevailing wage contributions was owed to the plan. Galstad remitted $38,500 to the plan; however, the remaining $198,238.12 remains outstanding.

Cargill and Galstad also failed to collect employer contributions owed to the plan from May 31, 2008, through May 31, 2010, resulting in a loss of $59,009.31 to the plan.