Orphan Plan Case Studies – NUMMI and Arthur D. Little
Evercore Trust, with its in-house legal, financial and administrative capabilities, is uniquely positioned to act as the plan fiduciary for complex orphan plans that require multi-disciplinary services and expertise.
New United Motor Manufacturing, Inc. (NUMMI) VEBA (2013-Present)
NUMMI was a joint venture between GM and Toyota that terminated in June 2009. NUMMI had two VEBA plans, with approximately 1,000 participants and their beneficiaries which became orphan trusts upon the dissolution of NUMMI. We were appointed as plan administrator and named fiduciary of the VEBAs (potentially, a 50+ year assignment), responsible for:
Negotiating the amount of the final contribution to the VEBAs;.
Selecting and replacing the trustee and other service providers for the VEBAs as appropriate;
Drafting investment policy statements, 5500 filings and plan documentation;
Directing third party investment manager with respect to the investment of VEBA assets (over $75 million); and
Amending or terminating the VEBAs.
Arthur D. Little Profit-Sharing Plan (2002-2007)
Prior to its Chapter 11 bankruptcy filing in February 2002, Arthur D. Little was a privately-held international consulting firm with approximately 2,400 employees operating in 30 countries, that sponsored a profit sharing plan, with approximately 3,200 participants and approximately $500 million of assets (including substantial investments in hedge funds and other illiquid assets). Upon the liquidation of Arthur D. Little, we were appointed in 2002 to wind-down and terminate the plan by the bankruptcy court, and:
Served as plan trustee, investment manager and administrator with respect to the plan for 5 years;
Evaluated the timing and sales strategy for the various illiquid assets, and the distribution of over $500 million in plan benefits;
Appointed and supervised various service providers (recordkeepers, asset managers, etc.); and
Terminated the plan in 2007 upon the distribution of the last plan benefits.