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Release Date: 05/09/2003
Release Number: ATL 03-90
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Huntsville, Alabama - The U.S. Department of
Labor filed a lawsuit here on May 5, 2003, to obtain a court-appointed
independent fiduciary to manage, terminate and distribute the assets to
participants and beneficiaries of the 401(k) plan of Keathley Aviation,
Inc. of Mobile, Alabama. |
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“When the defendant abandoned the plan, participants
were unable to get pension distributions or make inquiries about their
benefits,” said Howard March, regional director of the Atlanta Office of
the Employee Benefits Security Administration (EBSA) that investigated the
case. |
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Plans become "orphan plans" when they are
abandoned by all fiduciaries designated to manage and operate them and
their assets. |
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Keathley Aviation, an aircraft parts manufacturer,
ceased operations in June 2001. As of September 25, 2002, the plan covered
46 participants and had $27,445.74 in assets. |
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The lawsuit alleges Thomas Keathley, the plan’s
fiduciary, violated the Employee Retirement Income Security Act (ERISA)
when he abandoned the plan and could not be located. |
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The lawsuit, asks the court to appoint an independent
fiduciary to manage the plan and to remove Keathley as the plan fiduciary.
The suit was filed in federal district court in Huntsville, Alabama. |
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Employers and workers can reach the Atlanta Regional
Office at 404.562.2156 or EBSA’s toll free number, 1.866.444.EBSA
(3272), for help with problems relating to private-sector pension and
health plans. |
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(Chao v. Keathley Aviation, Inc. 401(k) Plan)
Civil Action No. CV-03-S-1025-NE |
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U.S. Department of Labor
news releases are accessible on the Internet. The information in this news
release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing
your request. Call 202.693.7773 or TTY 202.693.7755. |
