Printer Friendly Version
Release Date: June 4, 2008
Release Number: 08-762-CHI
Contact Name: Scott Allen or Brad Mitchell
Phone Number: 312.353.6976
Indianapolis – The U.S. Department of Labor
has sued Technengineering Services Inc., Fishers, Indiana, for failure
to properly administer the company’s 401(k) plan in violation of the
Employee Retirement Income Security Act (ERISA).
The lawsuit, filed in federal district court in
Indianapolis, Ind., alleges that the defendant has failed to take
fiduciary responsibility for the operation and administration of the
plan since June 2005. Technengineering also is alleged to have failed to
maintain an adequate fidelity bond for the plan. As relief, the suit
asks the court to remove the company from its position as fiduciary and
appoint an independent fiduciary to manage the plan, terminate it, and
distribute the assets to participants and beneficiaries.
Due to the company’s failure to discharge its
fiduciary duties, participants and beneficiaries have been unable to
obtain distributions from their individual accounts.
“The Labor Department will not hesitate to act when
plan fiduciaries fail to carry out their duty to properly administer the
retirement plan assets held on behalf of participants,” said Joseph
Menez, director of the Cincinnati Regional Office of the department’s
Employee Benefits Security Administration (EBSA).
The suit resulted from an investigation conducted by
EBSA’s Cincinnati Regional Office. Employers and workers can reach the
office at 859.578.4680 or toll-free at 866.444.3272 for help with
problems relating to private sector retirement and health plans. In
fiscal year 2007, EBSA achieved monetary results of $1.5 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
Chao v. Technengineering Services Inc.
Civil Action Number: 1:08cv0709
U.S. Department of Labor news releases are accessible on the
Department's Newsroom
page. 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 202.693.7828 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 the
Department's Compliance
Assistance page.
|