Archived News Release Caution: Information may be out of date.
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Release Date: 09/09/2004
Release Number: 04-1783-CHI
Contact Name: Rita D. Ford
Phone Number: 202.693.8671
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Cleveland, Ohio - The U.S. Department of Labor
filed a lawsuit to appoint an independent fiduciary for the retirement
plan of The Astatic Corporation of Conneaut, Ohio, to distribute plan
assets to participants and terminate the plan. |
“The
department acted quickly when the plan was abandoned to help workers
receive their promised benefits,” said Joseph Menez, director of the
Cincinnati regional office of the department’s Employee Benefits
Security Administration (EBSA), which investigated the case. |
Plans
become orphan plans when they are abandoned by all fiduciaries designated
to manage and operate them, thereby leaving participants without a way to
transact business and communicate with the plan. |
The
suit, filed in the federal district court in Cleveland, alleges that plan
administrator Michael Chait and fiduciaries Arthur N.K. Friedman and Carl
J. Mooney abandoned the plan when the company ceased operating in June
1987. Chait and Friedman are now deceased and the location of Mooney
is unknown. The Employee Retirement Income Security Act (ERISA) requires
plan fiduciaries to properly distribute plan assets and terminate a plan. |
The Astatic Corporation manufactured phonograph
cartridges, needles and related electronic devices. The employee stock
ownership plan and trust held $23,489 in assets and had approximately 143
participants as of March 31, 2004. |
In
fiscal year 2003, EBSA achieved record monetary results of $1.4 billion
related to the pension, 401(k), health and other benefits of millions of
American workers and their families. Employers and workers can reach the
Cincinnati regional office at 859.578.4680 or through EBSA’s toll-free
number, 1.866.444.EBSA (3272), for help with problems relating to
private-sector retirement and health plans. |
(Chao v. The Astatic Corporation)
Civil Action No. 1:04CV1769 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
Archived News Release Caution: Information may be out of date.
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