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Release Date: 03/11/2004
Release Number: 04-390-CHI
Contact Name: Keke Vencill
Phone Number: 202.693.4650
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Chicago, Illinois - The U.S. Department of Labor
has sued Edgewater Medical Center of Chicago to obtain a court-appointed
independent fiduciary to manage the defunct center’s 401(k) plan and
distribute more than $1 million in assets to 293 participants. |
The
independent fiduciary would have authority to terminate the plan and
distribute the assets to eligible participants. |
The
department’s lawsuit alleges that Edgewater Medical Center failed to
terminate the plan after ceasing operations in December 2001. The suit
also alleges participants and beneficiaries have been unable to obtain
distributions from their accounts. The company, which has been dissolved,
filed for Chapter 11 bankruptcy in February 2002. |
Plans
become “orphan plans” when they are abandoned by all fiduciaries
designated to manage and operate them and their assets. |
“The law states that plans must be managed and
operated by employers or plan fiduciaries,” said Kenneth Bazar, director
of the department’s regional office of the Employee Benefits Security
Administration. “Our case ensures that these workers and their families
have someone with authority to transact plan business and distribute its
assets to eligible participants.” |
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. Employers and workers can reach EBSA’s
Chicago regional office at 312.353.0900 or through its toll-free number,
1.866.444.EBSA (3272), for help with problems relating to private-sector
retirement and health plans. |
(Chao
v. Edgewater Medical Center)
Civil Action No. 04C-1835 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. 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 202.693.7765 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
www.dol.gov/compliance. |