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Denver, Colorado - The U.S. Department of Labor
has sued to appoint a successor fiduciary to manage the 401(k) profit
sharing plan of defunct Sirius Inc., Englewood, Colorado. The company’s
401(k) plan has been without oversight since the company ceased doing
business in 2002.
“This action demonstrates our commitment to protect
the hard-earned benefits of American workers,” said Steven Eischen,
director of the Kansas City regional office of the department’s Employee
Benefits Security Administration (EBSA), which investigated the case.
The plan was abandoned after the company ceased
operations and filed for dissolution in October 2002. According to the
suit, participants are unable to access their account balances, either to
reinvest them in other tax-qualified retirement savings vehicles before
retirement or to draw them down upon retirement.
Plans become “orphan plans” when they are abandoned
by all fiduciaries designated to manage and operate them, leaving
participants without a way to transact business and communicate with the
plan.
The suit, filed in federal district court in Denver,
seeks an order appointing an independent fiduciary to administer the plan
and assure distribution of its assets to participants and beneficiaries.
The court also asked that the plan be terminated.
Sirius, a provider of computer services, ceased
operations in late 2002. The employee 401(k) profit sharing plan had 13
participants and assets of $95,365.65 as of April 30, 2005.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers and
workers can reach EBSA’s Kansas City regional office at 816.426.5131 or
can contact EBSA’s toll-free number, 1.866.444.EBSA (3272), for help
with problems relating to private-sector retirement and health plans.
(Chao v. Sirius, Inc. 401(k) Plan)
Civil Action No. 05-cv-1453 |
