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EBSA says employer took liberties with retirement funds

by on
in Compensation and Benefits,Employment Law

A Pittsburgh-area CEO must replace money he withdrew or failed to pay into his employee’s 401(k) plan.

The U.S. District Court for West­ern Pennsylvania has ordered Kevin T. Weir, chief executive officer of Liberty-Pittsburgh Inc., to repay $67,138 to the fund.

The settlement resulted from an in­vestigation by the U.S. Depart­ment of Labor’s Employee Benefits Secu­rity Administration (EBSA). Fed­eral investigators found that Weir and the company failed to remit employee contributions and loan repayments to the fund in a timely manner. Plus, when Weir did make late contributions, he failed to pay two years’ worth of interest.

EBSA alleged that Weir and his company violated the Employee Retirement Income Security Act.

Note: Employers can’t use em­­ployees’ 401(k) plans as informal savings accounts that can be tapped to fund business activities. The law requires employers to meet their contractual obligations and faithfully deposit employee contributions.

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