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Release Date: January 26, 2006
Release Number: 06-134-NEW/BOS 2006-015
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Albany, New York - The U.S. Department of
Labor has filed suit in the U.S. District Court for the Northern
District of New York to appoint an independent fiduciary to administer
the abandoned 401(k) plan originally sponsored by Green Appliances Inc.
of Latham, New York.
According to James Benages, regional director for the
Labor Department’s Employee Benefits Security Administration (EBSA) in
Boston, Green Appliances had sponsored the 401(k) plan for the benefit
of its employees. At some point in the recent past, the company ceased
business operations without ensuring the appointment of a fiduciary to
oversee distribution of the plan’s assets to the participants.
Such action is a violation of the Employee Retirement
Income Security Act. 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 April 1, 2005 the plan had 15 participants and
$16,747.27 in assets with an additional $6,793.51 held in a forfeiture
account. AXA Equitable Life Insurance Company Inc. is the custodian of
the funds.
Said Benages, “The whereabouts of the former
fiduciaries of this plan are unknown. Therefore, we are taking this
legal action so that the plan’s participants can gain access to the
funds that rightly belong to them.”
The department’s suit resulted from an
investigation by EBSA’s Boston regional office. Employers and workers
in Upstate New York 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. For more
information see www.dol.gov/ebsa.
(Chao v Green Appliances 401(k) Plan)
Civil Action Number: 1:06-CV-80
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