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Release Date: February 7, 2006
Release Number: 06-162-NEW/BOS 2006-027
Contact Name: John M. Chavez
Phone Number: 617.565.2075
New York, New York - The U.S. Department of
Labor has obtained a federal court order appointing Jacqueline
Carmichael as the independent fiduciary to manage the abandoned 401(k)
plan of IFrame, Inc., New York, New York.
The company’s 401(k) plan was abandoned when it
ceased operations in June 2002 and the plan’s two trustees refused to
fulfill their fiduciary duties to the plan or appoint a successor
trustee. Plans become “orphan plans” when they are abandoned by all
fiduciaries designated to manage and operate them and their assets.
After the plan was abandoned, participants were unable to access their
401(k) accounts or obtain any information about their accounts.
According to Jonathan Kay, New York regional director
of the Labor Department’s Employee Benefits Security Administration (EBSA),
the department filed suit against the plan in the U.S. District Court
for the Southern District of New York. Carmichael will administer the
plan; distribute assets to participants, beneficiaries and other
creditors of the plan; and implement its orderly termination.
The custodian of the plan is Oppenheimer Funds. The
Labor Department believes the approximate value of the plan’s assets
at present is $169,380 for some 32 participants.
Said Kay, “Our legal action demonstrates that the
department is committed to doing everything in its power to protect the
retirement benefits promised to workers who participate in plans such as
this.”
In fiscal year 2005, EBSA achieved monetary results
of $1.7 billion related to the pension, 401(k), health and other
benefits of millions of American workers and their families. Employers
and workers can contact the New York regional office at 212.607.8600 or
EBSA’s toll free number at 1.866.444.EBSA (3272) for help with
problems relating to private-sector retirement and health plans.
(Chao v. IFrame, Inc. 401(k) Plan)
Civil Action No. 05-CV-10792
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