Archived News Release Caution: Information may be out of date.
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Release Date: 10/26/2004
Release Number: 04-2200-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Minneapolis, Minnesota - The U.S. Department of
Labor today obtained a consent judgment appointing Pension Plus, Inc. of
Edina, Minnesota, as the independent fiduciary of the defunct utility
contractor We Dig It, Inc. in Elk River, Minnesota to manage the 401(k)
plan and distribute more than $22,000 to 17 participants. The judgment
also removes the owner and trustee as plan fiduciaries. |
We
Dig It, Inc. owner, William R. Lundberg and trustee Betsey M. Chatham
failed to appoint a successor trustee to terminate the plan and distribute
its assets. The suit alleges that Lundberg failed to pay the costs of
terminating the plan after trustee Chatham signed the termination
agreement in November 2001. The company ceased operations in late 2001. |
The
defendants violated the Employee Retirement Income Security Act (ERISA) by
failing to properly administer the plan, to furnish summary annual reports
to participants for plan years 2001 and 2002, and to ensure the payment of
administrative expenses of the plan. The suit seeks to remove Lundberg and
Chatham as plan fiduciaries, permanently bar them from serving as
fiduciaries to plans governed by ERISA, and to appoint an independent
fiduciary to terminate the plan and distribute the assets to participants. |
Plans
become “orphan plans” when they are abandoned by all fiduciaries
designated to manage and operate them and their assets. |
“Our
action in the We Dig It case will ensure that the participants receive the
benefits promised by the company,” said Steven Eischen, regional
director of the department’s Employee Benefits Security Administration
Kansas City regional office. |
In
fiscal year 2004, EBSA achieved record monetary results of $3.1 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 Kansas City regional office at 816.426.5131 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. Lundberg)
Civil Action No. 04-CV-4565 |
U.S.
Labor Department news releases are accessible on the Internet at
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in alternate format upon request (large print, Braille, audio tape or
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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. |
Archived News Release Caution: Information may be out of date.
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