U.S. Department of Labor sues to protect participants of defunct New Jersey company’s employee benefit plan

Archived News Release — Caution: Information may be out of date.

Philadelphia — The U.S. Department of Labor has sued to obtain appointment of an independent fiduciary to oversee the 401(k) plan of C.R. Warner Inc., a defunct New Jersey company.

“We filed this case to ensure that the plan participants were able to recoup their retirement savings,” said Mabel Capolongo, regional director of the department’s Employee Benefits Security Administration (EBSA) in Philadelphia.

The company ceased operations in 2000. Since that time, C.R. Warner has not taken fiduciary responsibility to operate and administer the plan and its assets or to appoint a successor to assume that responsibility. As a result, plan participants and beneficiaries are unable to access their individual account balances.

The lawsuit, filed in the U.S. District Court for the District of New Jersey, seeks to appoint an independent fiduciary to terminate the plan and distribute its assets to eligible participants and beneficiaries.

As of June 2008, the latest data available, the plan had approximately $38,969 in assets.

The suit resulted from an investigation conducted by EBSA’s regional office in Philadelphia. Employers and workers can contact the 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 $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. C.R. Warner Inc. 401(k) Plan
Docket Number: 1:08-cv-6152

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Archived News Release — Caution: Information may be out of date.