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News Release
U.S. Labor Department sues to appoint independent fiduciary for 401(k) plan abandoned by Glendale, New York company
Archived News Release — Caution: Information may be out of date.
New York – The U.S. Department of Labor has filed a lawsuit asking the U.S. District Court for the Eastern District of New York to appoint an independent fiduciary to oversee the abandoned 401(k) plan of NCC Sportswear Corp. of Glendale, New York.
The NCC Sportswear Corp. Employee Savings & Profit Sharing Plan was sponsored by the company until mid-2006, when the company ceased doing business and the plan’s administrator stopped actively administering it.
This situation left the plan’s participants, mostly former employees of the defunct NCC Sportswear Corp., unable to access their accounts. Under the Employee Retirement Income Security Act, employee benefit plans must be managed by named fiduciaries. In the absence of a plan fiduciary, participants and beneficiaries cannot obtain plan information, make investments or collect retirement benefits.
The Labor Department’s suit asks the court to appoint an independent fiduciary to administer the plan, distribute its assets to participants and beneficiaries, and oversee the plan’s termination. As of November 6, 2007, the plan had 19 participants and $196,747.64 in assets, the latest data available. Citistreet Associates LLC is custodian of the funds.
“The workers who invested in an employee benefit plan are abandoned when the plan is abandoned,” said Jonathan Kay, regional director in New York for the Labor Department’s Employee Benefits Security Administration (EBSA). “We took this legal action to ensure that the plan is properly managed and its participants gain access to their retirement assets.”
The suit resulted from an investigation by EBSA’s regional office in New York City. Employers and workers can contact the office at 212.607.8600 or toll-free at 866.444.3272 for help with problems relating to private sector pension and health plans. In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Additional information can be found at www.dol.gov/ebsa.
Chao v. NCC Sportswear Corp. Employee Savings & Profit Sharing Plan
Civil Action Number: 1:08-CV-00997-JG-VVP
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Archived News Release — Caution: Information may be out of date.