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Release Date: 12/18/2001
Release Number: V-95
Contact Name: Sharon Morrissey
Phone Number: 202.693.8668
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Chicago, Illinois - A federal district court in
Chicago has ordered computer-consulting firm Primary Resources, Inc., and
the trustee of the company’s Primesave 401 (k) plan to terminate the
plan and distribute its assets to participants. The company was located in
Oak Brook Terrace, Illinois. |
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The consent order and judgment, signed December 14,
2001, also requires Laurence D. Flora, the corporate owner and plan
trustee, to assist the plan custodian with the orderly distribution of the
plan’s assets. As of January 16, 2001, the plan had six participants and
assets of $100,742. |
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The judgment resolves a suit filed in September against
the defendants for abandonment of the plan after the company ceased
operations in January 1999. The state of Illinois involuntarily dissolved
the company in March 1999. |
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Plans become orphan plans when they are
abandoned by all plan fiduciaries designated to manage and operate the
plans 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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“Our goal is to assure that consumers know the
department is only a phone call away to help protect benefits promised by
employers,” said Kenneth Bazar, director of the Chicago Regional Office
of the department’s Pension and Welfare Benefits Administration, which
investigated these cases. “ |
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Employers and workers can reach the Pension and Welfare
Benefits Administration at 312.353.0900 for help with problems relating to
private sector pension and health plans. |
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(Chao v. Primary Resources, Inc.
Civil Action No. 01-C-6896) |
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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 202.693.7775. |
