U.S. Labor Department sues to protect 401(k) assets of defunct piping company in St. Amant, Louisiana

Archived News Release — Caution: Information may be out of date.

St. Amant, Louisiana – The U.S. Department of Labor has sued to appoint an independent fiduciary to manage the Highland Fabricators Inc. 401 (k) Plan in St. Amant and distribute $85,981 in assets to 38 participants of the abandoned 401(k) plan. The Employee Retirement Income Security Act (ERISA) requires plans be managed by a named plan fiduciary.

“The department helps workers get their benefits when plan assets are either misused or plans are abandoned,” said Roger Hilburn, director of the department’s Dallas Regional Office of the Employee Benefits Security Administration (EBSA), which investigated the case.

The department’s suit seeks to appoint an independent fiduciary to administer the orphaned retirement plan, implement an orderly termination of the plan and pay the plan assets to its participants.

Pipeworks Reserve Inc., the defunct pipe and fitting manufacturer that sponsored the 401(k) plan, ceased operations around May 20, 2005. The department contends no one appears to have administered the retirement plan since that time.

The suit, filed in U.S. District Court for the Middle District of Louisiana in Baton Rouge, resulted from an investigation conducted by EBSA’s Dallas Regional Office. Employers and workers can reach the Dallas office at 972.850.4500 or toll-free at 866.444.3272 for help with problems relating to private sector retirement 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. Highland Fabricators Inc. 401 (k) Plan
Civil Action Number: 3:08-cv-838

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Archived News Release — Caution: Information may be out of date.