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Release Date: April 14, 2008
Release Number: 08-268-NEW/BOS 2008-110
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Buffalo, New York – The U.S. Department of
Labor has filed a lawsuit in the U.S. District Court for the Western
District of New York to appoint an independent fiduciary to oversee the
abandoned 401(k) plan of Pohlman Foundry Co. Inc. of Buffalo, New York.
The Pohlman Foundry Co. Inc. 401(k) Plan for
Collectively Bargained Employees was sponsored by the company until
around October 2002 when the plan’s fiduciaries stopped performing
their duties without appointing a successor fiduciary to perform those
functions. James Pohlman, Jay S. Hodge, James Gagan, Mike Mazzarino and
Brian Gerboth were the fiduciaries and company officials involved with
the plan.
As result of the abandonment, plan participants,
mostly former employees of the defunct company, have been unable to
access their accounts. Under the Employee Retirement Income Security
Act, employee benefit plans must be managed by plan fiduciaries. In the
absence of a fiduciary, participants and beneficiaries cannot obtain
plan information, make investments or collect retirement benefits.
The Labor Department’s suit asks the court to
appoint an independent fiduciary to manage the plan, distribute its
assets to participants and beneficiaries, and oversee its termination.
As of March 31, 2007, the plan had six participants and $20,848.69 in
assets, the latest data available. ADP Retirement is the custodian of
the funds.
“This legal action should demonstrate that the
Labor Department will not hesitate to protect the rights of even a small
group of plan participants by initiating litigation when necessary,”
said James Benages, regional director in Boston for the Labor Department’s
Employee Benefits Security Administration (EBSA). “We hope the court
will help ensure that these individuals receive the retirement benefits
they are due.”
The suit resulted from an investigation conducted by
EBSA’s regional office in Boston. Employers and workers in upstate and
western New York can contact that office at 617.565.9600 or toll-free at
866.444.3272 for help with problems relating to private sector pension
and health plans. In fiscal year 2007, EBSA achieved monetary results of
$1.5 billion related to pension, 401(k), health and other benefits for
millions of American workers and their families. Additional information
can be found at www.dol.gov/ebsa.
Chao v. Pohlman Foundry Co. Inc. 401(k) Plan for
Collectively Bargained Employees
Civil Action Number: 08-CV-279
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placing your request at 202.693.7828 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
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with its laws and regulations. For more information, please visit the
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