The U.S. Department of Labor has filed two lawsuits against Prime Care Services, the trustee of the 401(k) and pension plans in Southfield, Mich. The DOL says the trustee failed to close the plans and distribute $1,155,943 in assets to participants. The DOL wants to appoint an independent fiduciary to make the distributions.
The lawsuits came as a result of an investigation by the Employee Benefits Security Administration’s Detroit district office.
“Workers and their families counted on these benefit plans to help fund their retirement,” said U.S. Secretary of Labor Elaine L. Chao. “The department is seeking to have all the money in the benefit plans disbursed to the participants and beneficiaries.”