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Release Date: February 9, 2006
Release Number: 06-228-NEW/BOS 2006-029
Contact Name: John M. Chavez
Phone Number: 617.565.2075
Albany, New York - The U.S. Department of
Labor has obtained a federal court order appointing an independent
fiduciary to manage the abandoned 401(k) plan originally sponsored by
Green Appliances Inc., 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. The company recently ceased business operations
without ensuring the appointment of a fiduciary to oversee distribution
of the plan’s assets to participants.
The department’s lawsuit, filed at the beginning of
this year in the U.S. District Court for the Northern District of New
York, sought the appointment of an independent fiduciary to administer
the plan. 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 is the custodian of the
funds.
On February 2, U.S. District Judge David Hurd signed
an order appointing Jacqueline Carmichael as the plan’s independent
fiduciary. Carmichael will administer the plan; distribute assets to
participants, beneficiaries and other creditors of the plan, and
implement its orderly termination.
Said Benages, “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, even when they are abandoned by their trustees.”
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.
In fiscal year 2005, EBSA achieved record monetary
results of $1.7 billion related to pension, 401(k), health and other
benefits for millions of American workers and their families. For more
information, go to www.dol.gov/ebsa.
(Chao v Green Appliances 401(k) Plan)
Civil Action Number: 1:06-CV-80
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