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Compliance August 23, 2013
DOL Seeks New Fiduciary for Abandoned 401(k) Plan
August 23, 2013 (PLANSPONSOR.com) – The U.S. Department of Labor (DOL) has alleged that DTK Computer Inc. failed to take control of its retirement plan’s assets.
Reported by PLANSPONSOR staff
In Perez v. DTK Computer, Inc. (docket number: 13-cv-05644-DSF-SS), the DOL stated that prior to ceasing operations in 2002, DTK Computer Inc., the plan administrator of the DTK Computer Inc. 401(k) Plan, failed to take steps to ensure the continuing prudent administration of the plan.
On August 5, 2013, the DOL asked the U.S. District Court for the Central District of California to remove DTK from its position as the plan administrator and fiduciary of the plan, and to appoint an independent fiduciary with discretionary authority to administer the plan, including distributing plan assets to the participants and beneficiaries, and to terminate the plan.
DTK is alleged to have violated ERISA by failing to take control of the plan’s assets, including taking appropriate measures to allow for distribution of these assets to the plan’s participants and beneficiaries, and to terminate the plan. As of May 5, 2013, the plan had 25 participants and $33,611 in assets.
Read the full text of the lawsuit here.