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Release Date: 04/25/2001
Release
Number: V-381
Contact Name: Sharon Morrissey
Phone Number: 202.219.8921 |
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Chicago, Illinois - The U.S. Department of Labor
sued Humesco, Inc., formerly of Oak Brook, Illinois, and Robert G. Hershenhorn, the
trustee of its retirement savings plan, for failing to pay individual account
balances to participants and beneficiaries since the human resource/employee
leasing company went out of business in 1998. |
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Plans become orphan plans when they
are abandoned by plan fiduciaries designated to manage and operate the plans
and their assets. As a result, participants and beneficiaries are unable to
receive pension distributions and to make inquiries about their
benefits. |
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According to the department’s complaint,
filed April 24 in federal district court for the Northern District of Illinois,
Hershenhorn allegedly has not authorized distributions and/or rollovers to the
various plan participants from the plan trust account since July of 1998 and
the plan has not been formally terminated. The lawsuit also alleges the company
as the plan administrator did not administer, liquidate or distribute the
plan’s assets. |
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The plan had 15 participants with vested account
balances totaling $45,373.36 as of March 31, 2001. Since the corporation was
dissolved by the Illinois Secretary of State on June 30, 1998, certain
participants and beneficiaries have been unable to obtain their distributions
from their individual account balances. The last distribution occurred in July
of 1999 and several participants have not obtained distributions since
January 1,
1997. |
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The department is asking that Humesco and
Hershenhorn be removed from their positions as fiduciaries to the plan and that
an independent fiduciary be appointed to administer the plan to effect its
termination and to distribute plan assets to participants and
beneficiaries. |
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The complaint is the result of an investigation
conducted by the Chicago Regional Office of the Pension and Welfare Benefits
Administration, which oversees the fiduciary violations of the Employee
Retirement Income Security Act (ERISA). |
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(Chao v. Humesco, Inc. and Robert G.
Hershenhorn
Civil Action No. CV 01C2925) |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
