Compliance March 28, 2007

DoL Sues Trustee for Two Plans of MI Employer

March 28, 2007 (PLANSPONSOR.com) - The U.S. Department of Labor alleges in a suit that the administrator of two now-closed pension plans cost 141 plan participants a collective $1.15 million in assets when it failed to terminate the plans and distribute the money to the participants.
Reported by

The DoL’s two suits against the Prime Care Services Inc. plans in Southfield, Michigan claim that Paterno Dorenza – the co-owner of Prime Care Services and the trustee of the plans – failed to take responsibility for the plans when the company stopped doing business in 2006.

At the time the company closed, Prime Care Services Inc. 401(k) Savings Plan and Trust had $570,294.42 in assets and 77 participants. The Prime Care Services Inc. Money Purchase Pension Plan held $585,648.75 in assets for 64 participants.

Both suits were filed in the federal district court in Detroit, Michigan and seek to appoint an independent fiduciary to manage the plans, terminate them and distribute their assets to eligible participants and beneficiaries.

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