U.S. Labor Department Obtains Independent Fiduciary To Manage South Bend, Indiana 401(k) Plan

Archived News Release — Caution: Information may be out of date.

South Bend, Indiana - A federal bankruptcy court in Indiana has appointed Morris Anderson and Associates Ltd. to be the independent fiduciary of the abandoned Facility Management Investments, LLC 401(k) Plan, located in South Bend, Indiana, and to distribute more than $713,268 in assets to 180 participants and terminate the plan.

“The department is committed to helping workers regain access to their benefits when their plans are abandoned,” said Assistant Secretary of Labor Ann L. Combs of the Employee Benefits Security Administration (EBSA).

Plans are abandoned when fiduciaries designated to manage and operate them fail to fulfill their responsibilities – often following a significant business event such as a bankruptcy, merger, or acquisition. As a result of the abandonment, participants do not have a way to transact business or communicate with the plan.

The motion, filed in the U.S. Bankruptcy Court in South Bend, Indiana, states that the GS Consulting Services Inc. assumed responsibility for the Facility Management Investments, LLC 401(k) Plan when it purchased several entities in December 2004. GS Consulting filed for Chapter 7 bankruptcy on May 23, 2005 without first terminating the plan and distributing its assets to plan participants.

On April 21, 2006, the department published new rules to facilitate a voluntary, safe and efficient process for winding up the affairs of abandoned plans. The new rules allow financial institutions to take responsibility and distribute the assets of 401(k) plans to affected workers and their families. The department estimates that 1,650 such plans are abandoned each year. Information about the new rules is available under the Abandoned Plan Program section of EBSA’s Web site at www.dol.gov/ebsa.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health plans and other benefits for millions of American workers and their families.

This case was investigated by EBSA’s Chicago regional office. Employers and workers can reach the regional office at 312.353.0900, or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

(U.S. v. GS Consulting Services Inc.)
Case No. 05-33646

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

Contact Name: Gloria Della/David James
Phone Number: 202.693.8664/202.693.4676