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EBSA News Release: [09/11/2007]
Contact Name: Brad Mitchell
Phone Number: (312) 353-6976
Release
Number: 07-1038-CHI
U.S. Labor Department obtains judgments involving
Southfield, Mich., business 401(k) and pension plan funds
More than $1 million in benefits to be disbursed to participants
SOUTHFIELD, Mich. — The U.S. Department of Labor has obtained two default court judgments against the trustee of the benefit plans of now-defunct Prime Care Services Inc. in Southfield, leading to the termination of the company's 401(k) and pension plans so that $1,155,943 in assets can be distributed to participants.
"Workers and their families have been counting on these benefit plans to help fund their retirements," said Secretary of Labor Elaine L. Chao. "Fortunately in this case the department was able to recover all of the money in the benefit plans, more than $1.1 million, and it will be distributed to the participants and beneficiaries."
The original lawsuits alleged that plan trustee Paterno Doreza, who was also the co-owner of Prime Care Services, failed to take steps to terminate the company's plans and distribute the assets to participants and beneficiaries after the company ceased doing business. As of Nov. 30, 2006, the Prime Care Services Inc. 401(k) Savings Plan and Trust had $570,294.42 in assets and 77 participants. The Prime Care Services Inc. Money Purchase Pension Plan held $585,648.75 in assets for 64 participants.
The default judgments appoint an independent fiduciary to manage the plans, terminate them and distribute the assets to eligible participants and beneficiaries.
The judgments, entered in federal district court in Detroit, resulted from an investigation conducted by the Cincinnati Regional Office of the Labor Department's Employee Benefits Security Administration (EBSA). Employers and workers can reach the Cincinnati, Ohio, office at (859) 578-4680 or toll-free at (866) 444-3272 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.
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Chao v. Doreza
Civil Action Number 207cv11082 (401(k) Plan)
Civil Action Number 207cv11079 (Money Purchase Pension Plan)
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