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Release Date: 09/22/2004
Release Number: 04-1897-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Grand Rapids, Michigan - The U.S. Department of
Labor has filed a lawsuit to obtain a court order appointing an
independent fiduciary to manage the retirement savings plan of Commonpoint
Mortgage Company in Grand Rapids, Michigan. The department also is seeking
to replace the trustee and the company with an independent fiduciary that
has authority to terminate the retirement plan and distribute more than
$400,000 in assets to 74 participants. |
Commonpoint
Mortgage, the plan’s administrator, and trustee Michael D. Anderson
allegedly violated the Employee Retirement Income Security Act (ERISA)
when they abandoned the plan. The suit alleged the defendants failed to
carry out their fiduciary obligations to the plan after Commonpoint
Mortgage filed for bankruptcy on October 21, 1998. Anderson was also the
president and owner of the company. |
Plans
become “orphan plans” when they are abandoned by all fiduciaries
designated to manage and operate them and their assets. |
“The
law states that plans must be managed and operated by employers or plan
fiduciaries,” said Joseph Menez, director of the Cincinnati regional
office of department’s Employee Benefits Security Administration (EBSA).
“The department took legal action to ensure that the participants
receive the benefits the company promised them.” |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 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
Cincinnati regional office at 859.578.4680 or through its toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao
v. Anderson)
Civil Action No. 1:04CV0629 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
