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Release Date: 10/22/2002
Release Number: 39
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
sued defunct Dynaweld, Inc. of Aurora, Illinois on October 11, 2002, to
obtain a court-appointed independent fiduciary to manage, terminate and
distribute the assets of the company’s orphaned profit sharing plan to
participants and beneficiaries. |
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Plans become "orphan plans" when they are
abandoned by all fiduciaries designated to manage and operate them and
their assets. As a result, participants and beneficiaries are unable to
receive pension distributions and to make inquiries about their benefits. |
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Dynaweld, which provided construction companies with
large-scale earth moving and excavation equipment, ceased operations on
October 13, 2000 and was subsequently dissolved by the state of Illinois.
The plan’s three administrators also resigned between November and
December 2000. As of August 31, 2001, the plan covered eight participants
and had $122,628 in assets. |
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The lawsuit alleges that Dynaweld failed to appoint
successor fiduciaries to manage, operate and terminate the plan. As a
result, participants were unable to obtain pension distributions and
communicate with the plan. The company also failed to formally terminate
the plan and file the plan’s annual financial report for the year ending
in February of 2001. |
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The suit, filed in federal district court in Chicago,
resulted from an investigation conducted by the Chicago regional office of
the department’s Pension and Welfare Benefits Administration into
alleged violations of the Employee Retirement Income Security Act. |
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(Chao v. Dynaweld
Civil Action No. 02-C-7328) |
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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. |
