DOL Concerned About "Orphan" Plans (Posted August 22, 2000) Technical Tip 3: The following question and answer were from the DOL Q&A Session at the 1999 ASPPA Annual Conference: What are the Department's concerns with orphan plans? DOL Response: With respect to orphan plans, it is intended to seek the appointment of an independent fiduciary. Steps are being taken to determine the scope of the problem and what alternative approaches are available to solve orphan plan issues. Discussions are being held with various interested organizations to get a sense of the scope of the issue. One of several concerns is the question of whether a fiduciary can keep collecting fees from a plan if the fiduciary knows there is a problem with the status of the plan due to the lack of a plan sponsor. In no event can a fiduciary simply abandon a plan. Comment by the RL&R ERISA Attorneys: An "orphan" plan is a retirement plan which no longer has a plan sponsor. For example, a corporation may have gone through bankruptcy--and, due to nonpayment of fees and taxes, lost its corporate charter--but the assets in the retirement plan were not distributed to the employees. View all Tips © 2000-2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.