Compliance October 20, 2011

DoL Wins Right to Distribute Assets of Orphaned Plan

October 20, 2011 (PLANSPONSOR.com) - The U.S. Department of Labor (DoL) obtained a default judgment from the federal district court in Minneapolis allowing it to distribute $1.35 million from the defunct Northland Inn 401(k) plan. 
 
Reported by

The judgment will require the appointment of an independent fiduciary to terminate the plan and distribute its assets.  

The DoL sued Parkland Hotel Investors, the fiduciary of the Northland Inn 401(k) plan, in March of this year. The investigation found that the plan was abandoned after Parkland ceased operations in July 2009, and that assets totaling $1.35 million were not distributed to 96 plan participants (see “DoL Sues over Abandoned Plan”).

“Our legal action underscores the Labor Department’s commitment to hold accountable those who are entrusted with the assets of workers’ retirement plans,” said EBSA Assistant Secretary Phyllis C. Borzi. “We will continue to help workers obtain their rightful benefits when plan fiduciaries violate the law.”

The case is Solis v. Parkland Hotel Investors LP and the Northland Inn 401(k), Case No.11-00654. 

 

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