U.S. Labor Department Sues to Appoint Independent Fiduciary For Retirement Plan Abandoned by Bronx, New York Employer

Archived News Release — Caution: Information may be out of date.

New York - The U.S. Department of Labor has filed suit asking the U.S. District Court for the Southern District of New York to appoint an independent fiduciary to oversee the abandoned Sabe Restaurant 401(k) Plan.

The plan was sponsored by Sabe Restaurant Corporation and had two trustees, Urbano M. Benito and Margaret Benito. The company was located at 599 East Tremont Avenue, Bronx, New York. The plan has been without a trustee since around August 13, 2004 when the Benitos initiated, but failed to complete the termination of the plan. 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 14 participants and approximately $71,051 in assets. State Street Bank is the custodian of the funds.

“When a plan is abandoned, so are the workers who invested in it,” said Jonathan Kay, regional director in New York for the Labor Department’s Employee Benefits Security Administration (EBSA). “We took this 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 regional office in New York. Employers and workers can contact that office at 212.607.8600 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 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

(Chao v Sabe Restaurant 401(k) Plan)
Civil Action Number: 07-CV-758

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Archived News Release — Caution: Information may be out of date.