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News Release
Labor Department Sues to Obtain Independent Fiduciary For Abandoned Chicago 401(k) Plan
Archived News Release — Caution: Information may be out of date.
Chicago, Illinois - The U.S. Department of Labor filed a lawsuit on January 31, 2003 to obtain a court-appointed independent fiduciary to manage the 401(k) plan of defunct Strategic Radio Research, Inc. (SRR) of Chicago for the benefit of the plan participants.
“The Department of Labor is committed to doing everything we can to assist workers whose plans have been abandoned by employers and plan fiduciaries,” said Chicago Regional Director Kenneth Bazar of the department’s Employee Benefits Security Administration (EBSA).
The department has conducted nearly 600 investigations into “orphaned” plans and restored or protected $59.8 million in plan assets. To date, to assure orderly plan operations, the department also has arranged for independent fiduciaries to run more than 50 of these plans. Plans are considered to be “orphan plans” when they are abandoned by all plan fiduciaries designated to manage the plans and their assets.
The department's lawsuit alleges that plan officials Jamie Winkler and Michael Gerdes violated the Employee Retirement Income Security Act (ERISA) by failing to appoint a trustee when they left the company. A majority of the plan’s assets were distributed in 2001 to participants as part of a plan termination, which has not been formalized. As of January 11, 2002, the plan still had 8 participants and assets of $17,568.51.
Strategic Radio Research, a telemarketing firm, also operated as Touch Marketing Services, Recall Marketing, Strategic Record Research, Strategic Media Research, Accurtrack and Star. The company filed for Chapter 11 bankruptcy protection on January 9, 2001. This proceeding was converted to Chapter 7 on May 8, 2001. SSR, which changed its name to SMR Liquidation Corp., was involuntarily dissolved on December 1, 2001 by the State of Illinois.
The suit was filed in federal district court in Chicago. Employers and workers can contact the regional office on EBSA’s toll free number, 1.866.444-EBSA (3272), for help with any problems relating to private-sector pension and health plans.
Chao v. Strategic Radio Research, Inc. 401(k) Pension Plan
Civil Action No. 03C00718
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Archived News Release — Caution: Information may be out of date.