U.S. Labor Department obtains judgments against defunct Sunnyvale, California, company to protect participants of abandoned retirement plans

San Francisco – The U.S. Department of Labor has obtained default judgments appointing Saakvitne Law Corp. as an independent fiduciary for the 401(k) plans of a Sunnyvale, California-based software company and its San Mateo, California-based subsidiary. As fiduciary, Saakvitne will terminate both plans and distribute a total of nearly $556,500 in assets to eligible participants.

The judgments resolve separate suits filed by the Labor Department in November 2008 in the U.S. District Court for the Northern District of California against the two business management software companies – Vigilance Inc. and Harmony Software Inc.

“The Labor Department is committed to protecting the retirement security of America’s workers and their families,” said Phyllis C. Borzi, assistant secretary of the department’s Employee Benefits Security Administration. “This case demonstrates that we will take legal action to ensure workers receive the benefits they are promised.”

Vigilance Inc. established a plan in 2001 and ceased operations in 2004. Since 2004, the company has neither taken fiduciary responsibility for operation of the plan and its assets nor appointed anyone to assume that responsibility, leaving participants and beneficiaries unable to access their individual account balances. As of June 23, 2009, the Vigilance Inc. 401(k) Plan had approximately $226,145 in assets and 18 participants.

Harmony Software Inc. established its plan in 1998, ceased operations in 2003, and managed the plan until 2005. Since that time, the company has neither taken fiduciary responsibility for the operation of the plan and its assets nor appointed anyone to assume that responsibility. The remaining 14 plan participants have been unable to access their individual account balances. As of June 30, 2009, the plan had $330,341 in assets.

EBSA’s regional office in San Francisco conducted the investigations that led to the litigation now resolved. Employers and workers can contact that office at 415.625.2481 or toll-free at 866.444.3272 for help with any problems relating to private sector pension and health plans. In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at http://www.dol.gov/ebsa.

Solis v.Vigilance Inc. (Civil Action No. CV-08-5083)
Solis v. Harmony Software Inc. (Civil Action No. CV-08-5084)

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