Labor Department Sues Officer of Auburn Hills, Mich., Business For Failing to Properly Administer 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Detroit, Michigan - The U.S. Department of Labor has sued former president of now-defunct Employee Resource Management Inc., Auburn Hills, Michigan, for failing to administer and terminate the company’s 401(k) plan so that assets could be distributed to plan participants.

“The department will act when plan fiduciaries fail to carry out their duty to protect the retirement plan assets held on behalf of participants,” said Joseph Menez, director of the department’s Cincinnati regional office of the Employee Benefits Security Administration (EBSA).

The lawsuit alleges that savings plan administrators for Employee Resource Management and Simplified Employment Services Inc., which did business as Employee Resource Management, failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants when the company ceased doing business.

The suit seeks to appoint an independent fiduciary to manage the plan, terminate it and distribute assets to eligible participants and beneficiaries.

The suit, filed in federal district court in Detroit, resulted from an investigation conducted by EBSA’s Cincinnati regional office. Employers and workers can reach the regional office at 859.578.4680 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans. In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v. Employee Resource Management, Inc.)
Civil Action No. 2:06cv12503

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976