U.S. Labor Department obtains judgment leading to disbursement of 401(k) plan assets to workers in Auburn Hills, Michigan

Archived News Release — Caution: Information may be out of date.

Auburn Hills, Michigan – The U.S. Department of Labor has obtained a default judgment naming an independent fiduciary who will terminate the 401(k) plan of now defunct Employee Resource Management Inc. (ERM), Auburn Hills, and distribute plan assets to participants and beneficiaries.

The judgment, issued in U.S. District Court in Detroit, appoints an independent fiduciary who will terminate the 401(k) plan and distribute assets to participants and beneficiaries. The judgment resolves a lawsuit filed by the Labor Department against ERM and Simplified Employment Services Inc., which did business as ERM, alleging that the fiduciaries of the 401(k) plan had ceased to administer and terminate the savings program.

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

The suit resulted from an investigation conducted by EBSA’s Cincinnati regional office. Employers and workers can reach the Cincinnati 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 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. Employee Resource Management)
Civil Action No. 2:06cv12503

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Archived News Release — Caution: Information may be out of date.