Labor Department Sues to Appoint Independent Trustee for Abandoned 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Detroit, Michigan - The U.S. Department of Labor filed suit asking the federal district court in Detroit to appoint an independent trustee for the abandoned retirement plan of Zimm’s Vacuum Cleaner Company Inc., Livonia, Michigan, which ceased doing business in 2002.

The department’s lawsuit seeks appointment of an independent fiduciary to administer the plan, distribute its assets to plan participants and beneficiaries and oversee the plan’s termination. As of August 2005, the plan had four participants and $7,635 in assets. The suit seeks to replace former Zimm’s owner Daniel Zimmerman and General Manager Raymond Gladwish, who were serving as fiduciaries when the company was dissolved.

“When a plan is abandoned, so are the workers who invested in it,” said Joseph Menez, regional director for the Labor Department’s Employee Benefits Security Administration (EBSA). “We took this legal action so the plan will be properly administered and its participants can access the funds that rightly belong to them.”

The department’s suit resulted from an investigation conducted by EBSA’s Cincinnati regional office. Employers and workers can contact that office at 617.565.9600 or 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. Zimmerman)
Civil Action No. 2:06-cv-10123

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976