U.S. Labor Department sues to protect employee retirement assets of Reno, Nevada, workers

Archived News Release — Caution: Information may be out of date.

San Francisco – The U.S. Department of Labor has sued North Valley Precision Products of Reno, Nevada, for misusing 401(k) plan assets that resulted in 12 former employees being unable to access their retirement plan accounts.

The suit, filed in the U.S. District Court for the District of Nevada, alleges that the company violated the Employee Retirement Income Security Act (ERISA) when $26,506 in plan assets were transferred to a corporate account and used for non-plan expenses. The company also failed to appoint a successor to administer the plan after it ceased doing business in 2006.

The suit seeks to restore any losses to the plan that resulted from the misuse of the plan assets. The suit also seeks to remove the company as a fiduciary and appoint an independent fiduciary to administer the plan. The independent fiduciary will be responsible for terminating the plan and distributing the assets to eligible employees and beneficiaries.

“This case demonstrates the department’s commitment to taking action to protect the benefits promised to workers,” said Billy Beaver, regional director of the Labor Department’s Employee Benefits Security Administration (EBSA) office in San Francisco. “Plan participants have been unable to access their funds – money they’ve counted on for their retirement. We hope that, through this action, these workers and their families will have access to their retirement savings.”

North Valley Precision Products manufactured sheet metal boxes used for gaming machines and medical devices.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health plans and other benefits for millions of American workers and their families.

Employers and workers can reach EBSA’s San Francisco Regional Office at 415.625.2481 or through the agency’s toll-free number, 866.444.3272, for help with problems relating to private sector retirement and health plans. Information on EBSA is also available from the agency’s Web site at www.dol.gov/ebsa.

Chao v. North Valley Precision Products LLC
Civil Action Number: CV-00396-LRH-VPC

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Archived News Release — Caution: Information may be out of date.