Daily Document Update: HR Compliance Library, ¶45,994, Consent judgment partially resolves case over failing California MEWA - FEDERAL NEWS, (Mar. 28, 2019)

摘要

A federal district court in the Central District of California has entered a consent judgment against the operators of a failing California-based Multiple Employer Welfare Arrangement (MEWA) in a DOL lawsuit aimed at protecting more than 16,000 participants and beneficiaries, the DOL’s Employee Benefits Security Administration reported. As of the end of December 2018 the MEWA, run by Riverstone Capital LLC, had about $24 million in processed but unpaid claims, despite collecting only between $4-6 million in contributions each month and having reserves far short of the amount needed to pay the claims.