The U.S. Department of Labor
announced
Wednesday, March 28, that it has filed two lawsuits against the
trustee
of the benefit plans of the defunct Prime Care Services Inc. for failing
to distribute $1.15 million in retirement assets to participants.
In a statement, labor officials
said that the Southfield,
Michigan, company failed to
administer and terminate the company’s 401(k) plans and pension
plan.
Labor officials are pushing for
the
money to be distributed to participants.
“Workers and their families
counted on
these benefit plans to help fund their retirement,” Secretary of
Labor
Elaine Chao said in a statement. “The department is seeking to have all
the money in the benefit plans—more than $1.1 million—disbursed to the
participants and beneficiaries.”
The suits allege that plan
trustee
Paterno Doreza, who was also the co-owner of Prime Care Services, failed
to take responsibility for terminating the company’s plans and
distributing the
assets to participants and beneficiaries after the
company closed its business.
As of November 30, the Prime
Care
Services Inc. 401(k) Savings Plan and Trust had $570,294.42 in assets and
77 participants. The Prime Care Services Inc. Money Purchase Pension
Plan held
$585,648.75 in assets and 64 participants.
Each suit seeks to appoint an
independent fiduciary to manage the plan, terminate it and distribute
assets to
eligible participants and beneficiaries.
Filed by Lisa Shidler of Investment News,
a sister publication of
Workforce Management. To comment,
e-mail editors@workforce.com.