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Release Date: 05/28/2003
Release Number: BOS 2003-112
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Newark, New Jersey - The U.S. Department of
Labor obtained a consent judgment and order on May 23, 2003 appointing an
independent trustee to terminate the Coastal Copy Systems, Inc. 401(k)
plan and distribute approximately $30,000 in plan assets to 16
participants. |
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The judgment appoints Jacqueline Carmichael of Olney,
Maryland, as the plan’s independent fiduciary and gives her authority to
oversee the plan’s assets and terminate the plan in accordance with the
Employee Retirement Income Security Act (ERISA). |
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A lawsuit filed the same day in federal district court
in Newark, New Jersey, alleges the plan has existed without a trustee
since 1998. Its assets have been held by a third-party administrator,
Nationwide Pension Services of Dublin, Ohio, which, in cooperation with
the department, agreed to be a defendant in this case to effectuate the
plan’s termination. |
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Coastal Copy Systems, located in Red Bank, New Jersey,
was closed in 1999. The plan’s last known official did not name a
replacement fiduciary to settle plan accounts. |
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The department deemed the plan to be an orphaned due to
the lack of any authorized individual to provide directions to the
third-party administrator to distribute or roll over the plan account
balances to plan participants. Without a plan fiduciary, participants and
beneficiaries have been unable to obtain distributions from their
accounts. |
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“The participants in this plan came to us for help.
We took legal action to ensure that they receive the benefits promised by
the company," said Francis Clisham, director of the department’s
New York Regional Office of the Employee Benefits Security Administration
(EBSA), which investigated the case. |
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Employers and workers can contact the New York Regional
Office at 212.607.8600 or EBSA’s toll free number, 1.866.444.EBSA
(3272), for help with any problems relating to private-sector pension and
health plans. |
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(Chao v. Coastal Copy Systems, Inc. 401(k) Profit
Sharing Plan)
Civil Action No. CV-03-1777 |
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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. |
