Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.
News Release
Labor Department Sues Illinois Corporation and its President for Abandonment of 401(k) Plan
Archived News Release — Caution: Information may be out of date.
Chicago, Illinois - The U.S. Department of Labor sued defunct Altrum Technologies LLC of Chicago, Illinois, and its president on February 28 for abandoning the corporation’s 401(k) plan when they failed to properly terminate the plan and distribute its assets to the participants and beneficiaries.
“When the defendants abandoned the plan, participants were unable to get pension distributions or make inquiries about their benefits,” said Kenneth Bazar, director of the Chicago regional office of the Employee Benefits Security Administration (EBSA) that investigated the case.
The suit alleges that James Schmidt and the corporation violated the Employee Retirement Income Security Act when they failed to terminate the plan and distribute the assets. The Secretary of State for Illinois dissolved Altrum Technologies LLC on October 28, 2001.
The lawsuit seeks to remove the defendants as plan fiduciaries and appoint an independent fiduciary to terminate the plan and distribute its assets to the participants and beneficiaries. As of September 19, 2000, the plan had nine participants and $11,794.92 in assets.
Employers with similar problems, who are not yet the subject of an investigation by EBSA, may be eligible to participate in the department’s Voluntary Fiduciary Correction Program (VFCP). Participation in the VFCP requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes. For more information about the VFCP see www.dol.gov/ebsa.
Employers and workers can reach the EBSA’s Chicago regional office at 312.353.0900 or through its toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.
(Chao v. Altrum Technologies LLC et al
Civil Action No. 03-C-1528)
U.S. Department of Labor news releases are accessible on the Internet. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the Central Office for Assistive Services and Technology. Please specify which news release when placing your request. Call 202.693.7773 or TTY 202.693.7755.
Archived News Release — Caution: Information may be out of date.