The president and director of an electronics installation and repair company in Madison Heights have been ordered by a federal judge to restore $50,764 to the company’s retirement plan.
Gibson Television Service Inc.’s fiduciaries President David Gibson and Director Robert Gibson were ordered on Jan. 20 by Judge Laurie Michelson of the United States District Court Eastern District of Michigan Southern Division to pay back contributions to the company’s 401(k) Plan and Trust, a news release said.
David and Robert “failed to remit and/or forward employee contributions in a timely manner” to the plan and trust from January 2016 through August 2019, the news release said. They were alleged to have breached their fiduciary responsibilities under the Employee Retirement Income Security Act.
“When fiduciaries fail to act with integrity in their obligations to the hard-earned retirement savings of participants it puts the future savings of hard-working employees and the viability of their retirement plan in jeopardy,” Employee Benefits Security Administration Regional Director L. Joe Rivers in Cincinnati said in the news release.
In addition to restoring $50,764 to the plan for contributions and lost opportunity, David and Robert were ordered to pay a $10,153 penalty for violating the Employee Retirement Income Security Act of 1974.
The Act is a federal law that in part allows participants to sue for benefits and breaches of fiduciary duty, the U.S. Department of Labor’s website said.
