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Release Date: 10/05/2004
Release Number: 04-1825-CHI
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Cincinnati, Ohio - The U.S. Department of Labor
has sued to obtain the court appointment of an independent fiduciary to
manage the abandoned the 401(k) plan of the Forest City Auto Parts Company
in Solon, Ohio, distribute $3,050,520 in assets to 702 participants and
terminate the plan. |
“The
Labor Department’s action in the Forest City Auto case shows the
department’s commitment to protecting the benefits of America’s
workers and their families,” said Secretary of Labor Elaine L. Chao. “Last
year, the Administration achieved record monetary results recovering a
total of $1.4 billion for retirement, 401(k), health and other benefits.” |
The
department’s lawsuit alleges the company and trustee Timothy Katona
violated the Employee Retirement Income Security Act when they failed to
administer and terminate the plan. The defendants allegedly failed to
appoint a successor fiduciary to manage the plan when Forest City Auto
Parts ceased operations after filing for bankruptcy on February 26, 2001.
Katona failed to formally terminate the plan. As a result, participants
and beneficiaries were unable to obtain distribution of assets remaining
in the plan. |
Plans
become “orphan plans” when they are abandoned by all fiduciaries
designated to manage and operate them and their assets. |
Employers
and workers can reach EBSA’s Cincinnati regional office at 859.578.4680
or through its toll-free number, 1.866.444.EBSA (3272), for help with
problems relating to private-sector retirement and health plans. |
(Chao
v. Forest City Auto Parts)
Civil Action No. 1:04-CV-1831 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
