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Release Date: October 10, 2007
Release Number: 07-1508-CHI
Contact Name: Brad Mitchell
Phone Number: 312.353.6976
Chicago – The U.S. Department of Labor has
sued a fiduciary of the 401(k) plan of Health Care Services Corp. in
Chicago for failing to administer and terminate the plan so that assets
could be distributed to plan participants.
“The Labor Department will act when fiduciaries
fail to carry out their duty to protect retirement plan assets to pay
future benefits to participants and their beneficiaries,” said Steve
Haugen, director of the Chicago Regional Office of the department’s
Employee Benefits Security Administration (EBSA).
The department’s lawsuit alleges that plan
fiduciary Henry Zeisel failed to take responsibility for terminating the
plan and distributing its assets to beneficiaries and participants after
the company was dissolved in October 2003. The plan has more than
$50,000 in assets and 10 participants. The suit seeks to appoint an
independent fiduciary to manage the plan, terminate it and distribute
assets to eligible participants and beneficiaries.
Employers with similar problems who are not yet the
subject of investigations by EBSA may be eligible to participate in the
department’s Voluntary Fiduciary Correction Program (VFCP).
Participation in the VFCP requires employers to make workers whole but
allows them to avoid EBSA enforcement actions and civil penalties as
well as any applicable excise taxes. For more information about the VFCP,
see www.dol.gov/ebsa.
The suit, filed in federal district court in Chicago,
resulted from an investigation conducted by EBSA’s Chicago Regional
Office. Employers and workers can reach the office at 312.353.0900 or
toll-free at 1.866.444.EBSA (3272) for help with problems relating to
private sector retirement and health plans. In fiscal year 2006, EBSA
achieved monetary results of $1.4 billion related to pension, 401(k),
health and other benefits for millions of American workers and their
families.
Chao v. Henry Zeisel
Civil Action Number 1:07-cv-05507
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