U.S. Labor Department obtains court order appointing independent fiduciary for abandoned 401(k) plan of defunct Telford, Pennsylvania, company

Archived News Release — Caution: Information may be out of date.

Telford, Pennsylvania – The U.S. Department of Labor has obtained a default judgment appointing an independent fiduciary to terminate the 401(k) plan of defunct Telford company Keystone Contractors Inc. and distribute plan assets to participants and beneficiaries.

As of July 2007, the plan had 18 participants and approximately $27,051 in assets, the latest data available.

“When companies abandon retirement plans, they also abandon the workers who invested in their plans,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration (EBSA) Philadelphia Regional Office. “We took this action to ensure that these participants have access to their hard-earned retirement funds.”

The judgment resulted from a lawsuit filed by the Labor Department in November 2007 alleging that Keystone Contractors Inc. and trustee Donald Stauffer Jr. had violated the Employee Retirement Income Security Act (ERISA). The suit charged that after the company ceased operations in 2003, the fiduciaries failed to terminate the plan and distribute its assets. As a result, plan participants and beneficiaries were unable to access their individual account balances.

The department’s legal action resulted from an investigation conducted by EBSA’s Philadelphia Regional Office. Employers and workers can contact that office at 215.861.5300 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.

Chao v. Keystone Contractors Inc.
Civil Action Number 2:07-cv-04835-JP

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Archived News Release — Caution: Information may be out of date.