Feds sue Keene company over missing retirement funds — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Feds sue Keene company over missing retirement funds

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in Compensation and Benefits,Human Resources

U.S. Department of Labor (DOL) is suing a Keene-based rehabilitation therapy practice after investigators discovered that the owner had been deducting retirement plan contributions from employees’ paychecks for the past two years without forwarding any money to the plan.

The DOL’s Employee Benefit Security Administration is suing the owner of PROS Rehabilitation for $136,484 in missing contributions and $24,464 in gains the fund would have realized had the contributions been made on time. That kind of fiduciary breach violates the Employee Retirement Income Security Act (ERISA).

PROS Rehabilitation provides therapy services at skilled nursing facilities across the state.

The missing contributions affected approximately 18 employees’ accounts.

Note: Retirement plans are not employer piggy banks.

Employers must immediately forward payroll-deducted contributions to the em­­­ploy­­ees’ retirement plan accounts.

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