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Release Date: 10/23/2003
Release Number: 03-600-CHI
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Minneapolis, Minnesota - The U.S. Department of
Labor obtained a settlement with the administrator of the
Minneapolis-based Cyrus Intersoft, Inc., 401(k) plan on October 17, 2003,
who agreed to fulfill his fiduciary responsibilities and begin to
terminate the plan so benefits can be distributed to eligible
participants. |
“When
the defendant abandoned the plan, participants and beneficiaries were
unable to inquire about their accounts or to get retirement distributions.
We took action to ensure the workers have access to their retirement
savings,” said Robert Webber, acting director of the department’s
Kansas City regional office of the Employee Benefits Security
Administration (EBSA). |
The
settlement resolves a lawsuit filed May 20, 2003, alleging that Matthew
Thayer failed since 2001 to distribute or authorize distributions of
pension assets to participants or to formally terminate the plan. As a
result, plan 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 violated the
Employee Retirement Income Security Act. The plan had 25 participants and
held assets of $52,441.08 as of January 23, 2003. |
A
plan generally becomes an orphan plan when it is abandoned by plan
fiduciaries designated to manage and operate the plan and its assets.
Without a plan fiduciary, participants and beneficiaries are unable to
receive retirement distributions or to make inquiries about their
benefits. |
The
settlement, entered in federal district court in Minneapolis, resulted
from an investigation by the Kansas City regional office of the Employee
Benefits Security Administration (EBSA). Employers and workers can contact
the office at 816.426.5131 or through EBSA’s toll free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. |
(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. |
