U.S. Department of Labor sues to distribute 401(k) account assets of now defunct Troy, Michigan business

Archived News Release — Caution: Information may be out of date.

Troy, Michigan – The U.S. Department of Labor has sued Q.E.D. Inc. for failing to administer and terminate the company’s 401(k) plan so that assets could be distributed to plan participants. The 401(k) plan covered nine participants as of May 2007.

“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 the 401(k) plan administrator for Q.E.D. failed to take responsibility for terminating the plan and distributing its assets to beneficiaries and participants after the corporation was dissolved by the state of Michigan in July 2006. The suit asks that the court 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 office. Employers and workers can reach that office at 859.578.4680 or toll-free at 1.866.444.EBSA (3272) for help with problems relating to private sector retirement and health plans. In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Q.E.D. Inc.
Civil Action Number 2:07-CV-14079

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Archived News Release — Caution: Information may be out of date.