Archived News Release Caution: Information may be out of date.
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Release Date: 08/02/2004
Release Number: 04-1474-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Akron, Ohio - The U.S. Department of Labor has
obtained a default judgment removing Pony Computer Inc. of Streetsboro,
Ohio, as a fiduciary to its 401(k) plan and appointing Joseph S. Moynihan
as the independent fiduciary responsible for managing the 401(k) and
distributing more than $58,000 to 20 participants. |
The
Labor Department filed a lawsuit on March 24, 2004, alleging that Pony
Computer did not appoint a successor plan administrator when Dergann
Joseph Chou and Alice Yufen Chou abandoned the plan. Since the
abandonment, participants and beneficiaries have been unable to obtain
distributions from their accounts. Plans become “orphan plans” when
they are abandoned by all fiduciaries designated to manage and operate
them and their assets. |
“The
law states that plans must be managed and operated by employers or plan
fiduciaries,” said Joseph Menez, director of the department’s
Cincinnati regional office of the Employee Benefits Security
Administration (EBSA). “This judgment will ensure that these workers and
their families have someone with authority to process benefits for
eligible participants. ”The default judgment, filed in federal district
court in Akron, resulted from an investigation conducted by EBSA’s
Cincinnati office. |
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 EBSA’s Cincinnati regional office at 859.578.4680
or through its toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans. |
(Chao
v Pony Computer, Inc.)
Civil Action No. 5:04CV0570 |
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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