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Release Date: 06/04/2004
Release Number: 04-970-NEW
Contact Name: Rita D. Ford
Phone Number: 202.693.8671
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Newark, New Jersey - The U.S. Department of
Labor has sued to appoint an independent fiduciary for the abandoned
savings and investment plan of Sequel Concepts Inc. of South Plainfield,
New Jersey, which will distribute more than $1 million in plan assets to
participants and terminate the plan. |
“The
department is committed to act quickly to help workers get their benefits
when their plans are abandoned,” said Francis Clisham, regional director
of the New York regional office of the department’s Employee Benefits
Security Administration (EBSA). |
Plans
become orphan plans when they are abandoned by all fiduciaries designated
to manage and operate them and their assets. As a result of the
abandonment of the plan, participants do not have a way to transact
business or communicate with the plan. |
The
suit, filed in the federal district court in Newark, alleges that former
trustee Manuel Aldana abandoned the plan in January 2002, when the company
ceased doing business and failed to take the necessary actions to
terminate the plan in violation of the Employee Retirement Income Security
Act. |
Sequel Concepts Inc. leased employees to companies to
provide computer technical assistance. The plan had 68 participants and
held approximately $1,018,160 in assets as of January 2002. |
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. The case was investigated by EBSA’s
New York regional office. Employers and workers can reach the regional
office at 212.607.8600 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. Sequel Concepts Inc. Savings and Investment Plan)
Civil Action No. 04-CIV-2544 |
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. |