Ryan seeks probe of pension fund for Amweld retirees

Retirees are being charged for coverage even though the company canceled benefits.

STAFF REPORT

NILES — U.S. Rep. Tim Ryan of Niles, D-17th, is asking the U.S. Department of Labor to immediately investigate Amweld retiree health-care benefits’ cancellation.

The congressman sent a letter Friday to the labor department seeking a probe into the Amweld Building Products LLC pension fund.

“Retirees of the closed Amweld plants in Niles and Garrettsville, Ohio, are being told their health coverage was canceled retroactively while their premiums continued to be deducted from their pension checks,” Ryan wrote. “It is my understanding that the previous plan administrator has been fired, yet we have learned that the new owners continue to withhold the health insurance monthly premiums. To our understanding, the old, new, and parent company all deny responsibility for the plan.”

Because of multiple bankruptcies and creditor sales, Ryan’s letter said, the company has passed through the hands of Amweld Building Products LLC, ARK II Manufacturing LLC, and Amweld International LLC.

All three companies are apparently controlled by Patriarch Partners LLC.

Despite repeated attempts by retirees, employees and their union to contact all of the firms involved, it is not clear which of the companies could or should be liable for the plan’s administration.

“The cancellation is especially frustrating and troubling both because of its retroactivity and the negative impact that it could have on continued care. In addition to the enormous burdens that lack of health coverage can cause, the beneficiaries also face multiple deadlines for obtaining new coverage prior to the expiration of existing health-care benefits,” Ryan continued.

“This is in addition to the simple outrage that, despite a retroactive cancellation dating to Jan. 1, 2009, deductions were taken out of the March 2009 retiree pension checks. This makes a timely determination of responsibility for the plan crucial.”