Buffalo, New York - The U.S. Department of Labor
filed suit asking the federal district court in Buffalo to appoint an
independent trustee for the Geneva B. Scruggs Community Health Care Center
of Buffalo’s abandoned retirement plan.
When the health center ceased operations in April 2002,
the retirement plan was left without a trustee to manage its assets, as
required by the Employee Retirement Income Security Act (ERISA). As a
result, participants and beneficiaries cannot obtain plan information or
access accounts to reinvest before retirement or to begin collecting
annuities when they retire.
The department’s lawsuit seeks appointment of an
independent fiduciary to administer the plan, distribute its assets to
plan participants and beneficiaries and oversee the plan’s termination.
As of March 31, 2004, the plan had 183 participants and $561,042 in
assets. Equitable Insurance is the custodian of the funds.
“When a plan is abandoned, so are the workers who
invested in it,” said James Benages, regional director for the Labor
Department’s Employee Benefits Security Administration (EBSA). “We
took this legal action so the plan will be properly administered and its
participants can access the funds that rightly belong to them.”
The department’s suit resulted from an investigation
conducted by EBSA’s Boston office, which has jurisdiction for western
New York. Employers and workers can contact that office at 617.565.9600 or
EBSA’s toll free number, 1.866.444.EBSA (3272), for help with any
problems relating to private-sector pension and health plans.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to pension, 401(k), health and other
benefits of millions of American workers and their families. For more
information see www.dol.gov/ebsa.
(Chao v. Geneva B. Scruggs Community Health Care Center
Tax-Sheltered Annuity Plan)
Civil Action No. 05-CV-696-S |