Labor Department Obtains Court Order Appointing Independent Fiduciary For Abandoned Liberty, Missouri 401(k) Plans

Archived News Release — Caution: Information may be out of date.

Kansas City, Missouri - The U.S. Department of Labor has obtained a court order appointing an independent fiduciary to manage the abandoned 401(k) plans of Guy’s Acquisition Company. The suit also asks to distribute almost $20,000 to 48 eligible participants and to terminate the plans.

“The department took legal action to ensure that the participants in the plan receive their promised benefits,” said Steven R. Eischen, director of the Kansas City regional office of the department’s Employee Benefits Security Administration (EBSA), which investigated the case.

Guy’s Acquisition Company was a large snack food company based in Liberty, Missouri, that distributed products throughout the Midwest. It ceased operations in February 2001. The department’s lawsuit alleges that no one has taken fiduciary responsibility for the administration of the plans and their assets since the plans’ sponsor went out of business.

Plans become “orphan plans” when they are abandoned by all fiduciaries designated to manage and operate them and their assets.

In fiscal year 2004, EBSA achieved record monetary results of $3.1 billion related to the pension, 401(k), health and other benefits of millions of American workers and their families. Employers and workers can contact the Kansas City regional office at 816.426.5131. Help with problems relating to private-sector retirement and health plans can also be obtained by calling EBSA’s toll free number at 1.866.444.EBSA (3272).

(Chao v. Guy’s Acquisition Company 401(k) Plan)
Civil Action No. 05-0720-CV

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Archived News Release — Caution: Information may be out of date.