U.S. Labor Department Obtains Appointment of Independent Fiduciary for Abandoned Latham, New York, 401(k) Plan

Archived News Release — Caution: Information may be out of date.

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075