DOL Sues Fiduciaries of West Virginia Retirement Plans
Alleged misconduct has caused more than $7 million in plan losses, the department claims.
The U.S. Department of Labor has filed a lawsuit to protect participants in the Wheeling Corrugating Company Retirement Security Plan and the Salaried Employees' Pension Plan of Severstal Wheeling Inc., according to a news release. The department seeks to correct fiduciary breaches by the plans' investment manager and plan administrator, which caused the plans to sustain losses and lost earnings in excess of $7 million.
"This case underscores the department's commitment to hold fiduciaries accountable when we believe they have failed to meet their obligation to protect plan assets," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi.
Filed in the U.S. District Court for the Western District of Pennsylvania, the suit seeks to order the defendants to restore to the plans all losses, including interest or lost opportunity costs, caused by their fiduciary misconduct. It also seeks to remove the Retirement Committee as fiduciaries for the plans and appoint an independent fiduciary with authority to manage the plans. The plans previously terminated their relationship with WPN and LaBow.