Using its power under the Employee Retirement Income Security Act, the Department of Labor’sSecurity Administration (EBSA) has taken over the 401(k) plan of the Northland Inn in Minneapolis after the hotel’s owner ceased operations in 2009.
Parkland Hotel Investors abandoned the plan, leaving current and former employees with no way to access plan statements or benefits. According to EBSA, the company made no effort to contact plan beneficiaries.
Another company now operates the hotel.
Plans become “orphan plans” when they are abandoned by all of the fiduciaries designated to manage and operate them. EBSA will now distribute plan proceeds to the beneficiaries.