Independent Fiduciary Named to Administer Infotex, Ltd. “Orphaned” Pension Plan and Distribute its Assets

Archived News Release — Caution: Information may be out of date.

Philadelphia, Pennsylvania - An independent fiduciary will take over the orphaned 401(k) pension plan of Infotex, Ltd. of Springfield, Virginia, and will distribute its assets to its two participants, under a default judgment awarded to the U.S. Department of Labor last month.

Named plan trustee Russell Varnado and the company were removed from their positions with the plan, under terms of the December 14 judgment issued in federal district court in Alexandria, Virginia. David Lipkin of Metro Benefits of Pittsburgh, Pennsylvania, will administer the company plan until its termination.

The department alleged that when the Infotex and related companies, SISTEX, DSK Systems and OCS, ceased operations in March 1998, the company and Varnado did not take fiduciary responsibility for operating the plan and its assets nor did they appoint anyone to assume this responsibility. As of plan year 1999, the plan had $102,432.63 in assets.

Plans are considered by the department to become orphan plans when they are abandoned by all fiduciaries designated to manage and operate the plans and their assets. As a result, participants and beneficiaries are unable to receive distributions and to make inquiries about their pension benefits.

The investigation was conducted by the Philadelphia regional office of the department’s Pension and Welfare Benefits Administration into alleged violations of the Employee Retirement Income Security Act (ERISA).

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Archived News Release — Caution: Information may be out of date.