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News Release

Labor Department’s Lawsuit Names Independent Fiduciary To Terminate DCT’s 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Detroit, Michigan - A consent judgment and order obtained June 27 by the U.S. Department of Labor and the bankruptcy trustee for DCT, Inc., names an independent trustee to terminate the company’s 401(k) plan and distribute the $13.7 million in plan assets to over 700 participants.

The independent fiduciary, Midwest Pension Actuaries, Inc. of Farmington Hills, Michigan, will conclude any plan-related matters connected with the termination, consistent with the Employee Retirement Income Security Act (ERISA).

On June 21, the department filed a complaint in U. S. District Court in Detroit, to remove DCT, Inc., of Sterling Heights, Michigan, as plan administrator of the DCT 401(k) Plan. DCT had designated its human resources director as the sole person authorized to carry out these responsibilities including providing for distributions and rollovers. When the director resigned on February 28, 2002, the plan was left without a fiduciary. Distributions have been frozen since that time. The company is currently in Chapter 7 bankruptcy.

As of April 30, the plan had $13,701,303 in assets and 707 participants.

DCT, Inc. was a business providing integrated design, manufacturing and installation of automated welding, assembly and material hauling systems for auto manufacturers and Tier One supplies (generally the largest suppliers to automakers).

“The department’s goal is to protect the hard-earned benefits promised to employees,” said Joseph Menez, regional director of the Cincinnati regional office of the Labor Department’s Pension and Welfare Benefits Administration (PWBA).

Employers and workers can contact the Cincinnati office at 1.859.578.4680 or PWBA’s Toll-Free Hotline number at 1.866.275.7922 for help with any problems relating to private-sector pension and health plans.

This case resulted from an investigation conducted by the PWBA’s Detroit district office.

(Chao v. DCT, Inc.
Civil Action # 02-72599)

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Archived News Release — Caution: Information may be out of date.

Employee Benefits Security Administration
July 2, 2002
Release Number