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Release Date: March 14, 2008
Release Number: 08-273-NEW/BOS 2008-083
Contact Name: John M. Chavez
Phone Number: 617.565.2075
New York – The U.S. Department of Labor has
filed a lawsuit asking the U.S. District Court for the Eastern District
of New York to appoint an independent fiduciary to oversee the abandoned
401(k) plan of NCC Sportswear Corp. of Glendale, New York.
The NCC Sportswear Corp. Employee Savings &
Profit Sharing Plan was sponsored by the company until mid-2006, when
the company ceased doing business and the plan’s administrator stopped
actively administering it.
This situation left the plan’s participants, mostly
former employees of the defunct NCC Sportswear Corp., unable to access
their accounts. Under the Employee Retirement Income Security Act,
employee benefit plans must be managed by named fiduciaries. In the
absence of a plan 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 administer the plan, distribute its
assets to participants and beneficiaries, and oversee the plan’s
termination. As of November 6, 2007, the plan had 19 participants and
$196,747.64 in assets, the latest data available. Citistreet Associates
LLC is custodian of the funds.
“The workers who invested in an employee benefit
plan are abandoned when the plan is abandoned,” said Jonathan Kay,
regional director in New York for the Labor Department’s Employee
Benefits Security Administration (EBSA). “We took this legal action to
ensure that the plan is properly managed and its participants gain
access to their retirement assets.”
The suit resulted from an investigation by EBSA’s
regional office in New York City. Employers and workers can contact the
office at 212.607.8600 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. NCC Sportswear Corp. Employee Savings &
Profit Sharing Plan
Civil Action Number: 1:08-CV-00997-JG-VVP
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