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Release Date: 05/21/2003
Release Number: 234
Contact Name: Rita Ford
Phone Number: 202.693.8671
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Minneapolis, Minnesota - The U.S. Department of
Labor has sued the administrator of the 401(k) plan of Cyrus Intersoft,
Inc. in Minneapolis, Minnesota on May 20, 2003, for abandoning the plan
when the corporation ceased operations in June 2001. |
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The suit alleges that Matthew Thayer, director of human
resources for Cyrus Intersoft, Inc. and plan fiduciary, has failed since
2001 to distribute or authorize distributions of pension assets to
participants or to formally terminate the plan. Consequently, the plan’s
participants and beneficiaries were unable to obtain retirement
distributions or get answers to their inquiries. The defendant’s failure
to properly administer the 401(k) plan violates the Employee Retirement
Income Security Act (ERISA). |
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The suit seeks to remove the defendant as fiduciary of
the plan and to appoint an independent fiduciary to administer the plan,
terminate the plan, and to distribute plan assets. As of January 23, 2003,
the plan had 25 participants and funds totaling $52,441.08. |
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“When the defendants abandoned the plan, participants
were unable to get pension distributions or make inquiries about their
benefits,” said Gregory Egan, director of the department’s Kansas City
regional office of the Employee Benefits Security Administration (EBSA),
which investigated the violations of ERISA. “Our case ensures that
workers and their families have someone with authority to transact plan
business and distribute plan assets to eligible participants.” |
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The suit was filed in federal district court in
Minneapolis. Employers and workers can reach EBSA’s Kansas City Regional
Office at 816.426.5131 or through its toll-free number, 1.866.444.EBSA
(3272), for help with problems relating to private-sector pension and
health plans. |
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(Chao v. Thayer)
Civil Action No. 03-3212 JMR/JSM |
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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 202.693.7755. |
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