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Release Date: September 22, 2008
Release Number: 08-1298-CHI
Contact Name: Gloria Della/Richard Manning
Phone Number: 202.693.8664/202.693.4676
Minneapolis – The U.S. Department of Labor
has sued to appoint an independent fiduciary to administer and terminate
the 401(k) plan of KSM Holding Corp., a defunct Minneapolis company.
“We filed this case to ensure that the plan
participants are able to recoup the money they entrusted to the plan for
their retirement savings,” said Steven Eischen, regional director of
the department’s Employee Benefits Security Administration (EBSA) in
Kansas City, Missouri.
The company established the plan in 1995 and managed
it until 2002 when the company ceased operations. Since that time, the
plan’s fiduciary has failed to distribute the remaining assets of the
plan and to appoint a fiduciary to assume the responsibility for
administering the plan. As a result, some plan participants and
beneficiaries have been unable to access their individual account
balances.
The lawsuit, filed in the U.S. District Court for the
District of Minnesota, seeks to remove Daniel Larson, chief financial
officer of KSM and a plan fiduciary, from his position as fiduciary, and
appoint an independent fiduciary to terminate the plan and distribute
its assets to participants and beneficiaries.
The suit resulted from an investigation conducted by
EBSA’s regional office in Kansas City. Employers and workers can
contact the office at 816.285.1800 or toll-free at 866.444.3272 for help
with problems relating to private sector pension 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. Additional information can be found at
www.dol.gov/ebsa.
Chao v. KSM Holding Corp.
Civil Action Number xxxxxx
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 (large print, Braille, audio tape or
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placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department 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.
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