EDWARDSVILLE — An Illinois-based credit union is claiming its employee savings and profit sharing plan administrator's negligence cost it more than $200,000 after part time employees were left out of the plan.
GCS Credit Union filed a complaint Aug. 18 in the Third Judicial Circuit for Madison County against American United Life Insurance Company alleging professional negligence and breach of contract.
According to the complaint, GCS hired American United Life Insurance to provide investments, administrative functions and record keeping for its "Hourly Employees Savings and Profit Sharing Plan." GCS alleges it provided American United Life with its employee payroll and census files in order to implement the savings profit sharing plan drafted by American United Life.
GCS claims American United Life failed to notify it that the plan's "exclusion" of GCS part time employees who had more than 1,000 "hours of service" in a "plan year" violated the terms of the plan. GCS also claims the "improper inclusion" of its part time employees "exposed the plan to potential revocation" by the Internal Revenue Service and forced the plaintiff to make corrected and matching contributions to the plan that included contributions of $31,881, $113,232 and $88,213.
GCS alleges in its suit that American United Life's negligence and breach of contract caused an "operational failure" of their employee benefits plan.
GCS seeks monetary relief of more than $50,000, plus interest and all other just relief. It is represented by Mark Goldenberg and Sandra Tatoian of Goldenberg Heller & Antognoli PC in Edwardsville.
Madison County Circuit Court case number 20-L-00181