Labor Department Obtains Appointment of Independent Fiduciary for Abandoned New York Retirement Plan

Archived News Release — Caution: Information may be out of date.

New York - The U.S. Department of Labor has obtained a federal court order appointing an independent fiduciary to manage the abandoned retirement plan of Lofek Construction Corporation, Newburgh, New York.

The company’s retirement plan, formally known as the National Benefit Retirement Plan and Trust, was abandoned when the company ceased operations in 1993 and the plan’s trustee died without naming a replacement to manage the plan.

Plans become “orphan plans” when they are abandoned by all fiduciaries designated to manage and operate them and their assets.

According to Jonathan Kay, New York regional director of the Labor Department’s Employee Benefits Security Administration, U.S. District Judge Barbara Jones signed an order September 22 appointing Jacqueline Carmichael as independent fiduciary of the plan. Carmichael will administer the plan; distribute assets to participants, beneficiaries and other creditors of the plan; and implement its orderly termination.

Said Kay, “This action demonstrates that, despite the small size of this or any plan, the department is committed to doing everything in its power to protect the benefits promised to workers who participate in such plans.”

In fiscal year 2004, EBSA achieved record monetary results of $3.1 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. National Benefit Retirement Plan and Trust)
Civil Action No. 05 CIV 6251

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Archived News Release — Caution: Information may be out of date.