U.S. Labor Department takes legal action against Technengineering Services for failure to administer employee 401(k) plan

Archived News Release — Caution: Information may be out of date.

Indianapolis – The U.S. Department of Labor has sued Technengineering Services Inc., Fishers, Indiana, for failure to properly administer the company’s 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit, filed in federal district court in Indianapolis, Ind., alleges that the defendant has failed to take fiduciary responsibility for the operation and administration of the plan since June 2005. Technengineering also is alleged to have failed to maintain an adequate fidelity bond for the plan. As relief, the suit asks the court to remove the company from its position as fiduciary and appoint an independent fiduciary to manage the plan, terminate it, and distribute the assets to participants and beneficiaries.

Due to the company’s failure to discharge its fiduciary duties, participants and beneficiaries have been unable to obtain distributions from their individual accounts.

“The Labor Department will not hesitate to act when plan fiduciaries fail to carry out their duty to properly administer the retirement plan assets held on behalf of participants,” 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 office at 859.578.4680 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Technengineering Services Inc.
Civil Action Number: 1:08cv0709

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

Archived News Release — Caution: Information may be out of date.