Archived News Release Caution: Information may be out of date.
|
Release Date: 02/03/2004
Release Number: 04-15-CHI
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
|
Printer Friendly
Version
|
|
Minneapolis, Minnesota - The U.S. Department of
Labor asked a federal court to appoint an independent fiduciary to manage
and terminate the 401(k) plan of Plymouth, Minnesota-based Riscomp
Industries, Inc. |
“The
Bush Administration is committed to protecting the retirement security of
America’s workers and their families. This case demonstrates that we
will take quick legal action to ensure that workers receive the benefits
they are promised,” said Ann L. Combs, Assistant Secretary of Labor of
the Employee Benefits Security Administration (EBSA). |
The
department’s suit, filed in district court in Minneapolis, alleges that
the company violated the Employee Retirement Income Security Act (ERISA)
by abandoning the plan and leaving participants without a way to transact
business and communicate with the plan. Riscomp filed for Chapter 11
reorganization bankruptcy in April 2002. The bankruptcy trustee stopped
distributing plan assets to participants in July 2003 and asked the court’s
permission to abandon the plan on October 28, 2003. As a result, no
fiduciary was managing the plan and participants were left without a way
to access their retirement benefits. |
The
suit seeks to remove the company as the plan administrator and appoint
Gtrust of Topeka, Kansas as the independent fiduciary to distribute plan
assets to the participants and beneficiaries, and to terminate the plan. |
Riscomp, a professional employer organization (PEO),
leased employees to 91 client organizations in 20 different states
including Minnesota, Wisconsin and South Carolina. The company ceased
business operations shortly after the conversion to Chapter 7 bankruptcy.
As of September 9, 2003, the plan had 345 participants and assets totaling
$2,515,549. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. The Kansas City regional office of
EBSA conducted this investigation. 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 any problems relating to
private-sector retirement and health plans. |
(Chao
v. Riscomp Industries, Inc.)
Civil Action No. CV 04-608 |
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. |
Archived News Release Caution: Information may be out of date.
| |
|