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News Release

U.S. Department of Labor For Immediate Release


Pension and Welfare Benefits Administration Sept. 30, 2002
Denver, Colo. Contact: Sharon Morrissey
PWBA 02-40 Phone: (202) 693-8664

Labor Department Settles Lawsuit with Colorado Springs-Based


Johnson Plumbing Plan Official

DENVER – A settlement has been reached between the U.S. Department of Labor and defendant
Richard Johnson, a fiduciary of the Colorado Springs, Colo. based Johnson Plumbing Company’s
SIMPLE IRA plan. From May 2000 to December 2000, Johnson withheld $34,282 from the paychecks
of employees, intended as contributions to the plan, but failed to forward appropriate amounts to their
individual retirement accounts.

Richard Johnson, also the company’s president, was ordered to begin repaying the losses, plus interest,
to the plan participants according to a payment schedule outlined in the court order. He also was
permanently barred from further violations of the Employee Retirement Income Security Act (ERISA),
which governs pension plans offered by private-sector employers.

There were 46 participants in the plan and assets of $160,794 in individual participant accounts as of Dec. 31,
2000.

“The department’s goal is to protect the hard-earned benefits promised to employees,” said Gregory
Egan, Regional Director of the Kansas City office of the Labor Department’s Pension and Welfare
Benefits Administration (PWBA), which conducted the investigation.

The department’s complaint was filed Sept. 10, 2002 and the consent judgment was entered on Sept.16,
2002 in the federal district court in Denver, Colo.

Egan noted that employers with similar problems, who are not yet the subject of an investigation by PWBA, may be
eligible to participate in the Department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP
requires employers to make workers whole but allows them to avoid PWBA enforcement actions and civil penalties as
well as applicable excise taxes.

“The VFCP gives sponsors a way to come into compliance with ERISA by restoring workers’ benefits while avoiding an
investigation by PWBA,” said Egan. “It protects workers’ health and retirement benefits and allows us to focus our
resources on those who seek to avoid compliance.”

Employers and workers can contact the Kansas City office at 1-816-426-5131 or call PWBA’s toll free
number at 1-866-275-7922 for help with problems relating to private-sector pension and health plans.

###
(Chao v. Richard Johnson)
Civil Action # 02-B-1745

U.S. Labor Department releases are accessible on the Internet at http://www.dol.gov. The information in this news release will be
made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which
news release when placing your request. Call (202) 219-7773 or TTY (202) 501-3911.

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