U.S. Labor Department Sues to Appoint Independent Fiduciary for Retirement Plan Abandoned by Johnson City, New York Company

Archived News Release — Caution: Information may be out of date.

Syracuse, New York - The U.S. Department of Labor has filed suit asking the U.S. District Court for the Northern District of New York to appoint an independent fiduciary to oversee the abandoned Azon Employees Retirement Plan.

The plan was sponsored by Azon Corporation of Johnson City, New York, which ceased operations in July 2002. At that time, the retirement plan was left without a trustee to manage its assets, as required by the Employee Retirement Income Security Act (ERISA). As a result, participants and beneficiaries cannot obtain plan information or access accounts to make investments or collect retirement benefits.

Under the department’s lawsuit, the court-appointed independent fiduciary would administer the plan, distribute its assets to plan participants and beneficiaries and oversee the plan’s termination. As of March, 2006, the plan had 38 participants and $841,415 in assets. T. Rowe Price is the custodian of the funds.

“When a plan is abandoned, so are the workers who invested in it,” said James Benages, Boston regional director for the Labor Department’s Employee Benefits Security Administration (EBSA). “We took this legal action so the plan will be properly administered and its participants can access the funds that rightly belong to them.”

The suit resulted from an investigation conducted by EBSA’s Boston regional office, which has jurisdiction for western New York. Employers and workers can contact that office at 617.565.9600 or EBSA’s toll free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector pension and health plans.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v Azon Employees Retirement Plan)
Civil Action Number: 3:06-CV-1006

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075