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Release Date: 05/17/2001
Release Number: III-01-05-17-040-DC
Contact Name: Gloria Della
Phone Number: 202.219.8921
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Philadelphia, Pennsylvania - On May 14, 2001, a
federal court in New Jersey appointed an independent fiduciary to manage
and terminate the abandoned pension plan of the International Brotherhood
of Law Enforcement and Security Officers which covered security guards at
Howard University in Washington, DC. |
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Under the court order, the independent fiduciary will
have full authority to collect assets owed to the plan, pay benefits to
participants, pay creditors and terminate the plan. |
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The International Brotherhood of Law Enforcement and
Security Officers (IBLESO) in New York City was a labor union representing
security guards until it ceased operations in 1987. The plan covered up to
65 participants and had $235,944.50 in assets in a general account with
Equitable Life Assurance Society as of March 2000. |
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The pension plan has been orphaned since 1987
after the criminal conviction of trustees Ivan Forde and Naomi Garnett
that year. As a result of the conviction, the former trustees were barred
from serving as fiduciaries to any plan governed by private employee
benefit law. Replacement trustees were never appointed to manage and
operate the pension plan. The former trustees are now deceased. |
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Plans become orphan plans when they are
abandoned by all plan fiduciaries designated to manage and operate them
and their assets, preventing participants and beneficiaries from receiving
pension distributions and making inquiries about their benefits. |
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The Labor Department's lawsuit, filed simultaneously
with the court order on May 15, alleges that IBLESO violated the Employee
Retirement Income Security Act by leaving the plan without a trustee,
failing to appoint successor trustees to administer the plan, and failing
to terminate the plan and distribute its assets to participants. |
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The lawsuit was filed in federal district court in
Newark, New Jersey. The court actions resulted from an investigation
conducted by the Washington, DC district office of the Department’s
Pension and Welfare Benefits Administration. |
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“This action reaffirms our commitment to protect the
hard-earned benefits promised by employers,” said Mabel Capolongo,
director of PWBA’s Philadelphia Regional Office. “Employers and
workers can reach us at 301.713.2000 for help with any problems relating
to private-sector pension and health plans.” |
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(Chao v. The Int'l Brotherhood of Law
Enforcement and Security Officers Pension Plan
Civil Action No.01-CIV-2306) |
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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 202.693.7775. |
