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Release Date: 09/16/2002
Release Number: 332
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Minneapolis, Minnesota - A consent judgment and order
obtained on September 5 by the U.S. Department of Labor ordered the appointment of
an independent fiduciary to terminate the Sun Country Airlines, Inc. Retirement
Savings Plan and distribute $2.5 million in plan assets to over 700
participants. Sun Country Airlines, Inc., located in Mendota Heights, Minnesota, is currently in Chapter 7 bankruptcy. |
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According to the department’s lawsuit, filed in federal
district court in Minneapolis, Minnesota on August 21, all of the fiduciaries of the
Sun Country plan either resigned or were terminated from employment with the
company. Therefore, no authorized individual was left to provide directions to
the bank holding the plan’s assets to distribute or roll over account balances
of individual participants. Without a plan fiduciary, participants and
beneficiaries have been unable to obtain distributions from their accounts. |
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The Sun Country plan was established December 1, 1983. As of
July 15, 2002, the plan had $2,528,629 in assets and 721 participants. |
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The consent judgment and order approved the appointment of
Lefoldt & Co., P.A., Certified Public Accountants, as the independent
fiduciary. Lefoldt & Company will have authority to distribute the
plan’s assets and terminate the plan in accordance with the Employee
Retirement Income Security Act. |
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“This action demonstrates our commitment to protect the
hard-earned benefits of American workers,” said Gregory Egan, director of the
department’s Kansas City regional office of the Pension and Welfare Benefits
Administration, which investigated the case. |
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Employers and workers can contact the Kansas City
regional office at 1.816.426.5131 or EBSA’s Toll-Free Employee & Employer
Hotline number, 1.866.275.7922,
for help with problems relating to private-sector pension and health plans. |
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(Chao v. Sun Country Airlines, Inc.
Civil Action No CV-02-2967) |
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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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