Estate Planning News

U.S. Labor Department Action Restores Funds To San Luis Obispo 401k Fund

Local business owners agree to repay 401k funds owed to 16 plan participants

The owners of a San Luis Obispo, California, auto repair and towing business have agreed to restore $26,695 owed to the company’s 401(k) pension benefit plan under a consent order obtained by the U.S. Department of Labor.

Under the order, entered in the Central District Court of California in Fresno, John S. and Louise S. Villa agreed to wind down and terminate the plan after all remaining funds are restored and the assets distributed to16 participants. The Villas also waived any interest in funds restored to the plan and must pay a $5,339 penalty.

In addition, they are permanently barred from future service as fiduciaries or service providers of employee benefit plans covered by the Employee Retirement Income Security Act (ERISA). The Villas are the owners of Villa Automotive and Villa Service Center and plan trustees.

“We are pleased to successfully restore the full amount due to employees.” said Billy Beaver, regional director of the Labor Department’s Employee Benefits Security Administration (EBSA) in Los Angeles, which investigated the case. “The department is committed to protecting the benefits of America’s workers and retirees.”

In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Contact our Plano estate planning attorney now.

	Did You Know?
	A Will, is sometimes called a "Last Will and Testament" Used to transfer property you hold in your name to the person(s) and/or organization(s) you want to have it. A Will also typically names someone you select to be your Personal Representative (or "Executor") to carry out your instructions and names a Guardian if you have minor children. A Will only becomes effective upon your death, and after it is admitted to probate.