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Release Date: 07/07/2003
Release Number: BOS 2003-158
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor obtained a consent judgment June 27 appointing an independent
fiduciary to replace one of the two trustees of the 401(k) plan of defunct
Pinay Flooring Products, Inc. of Brooklyn, New York. The trustee has
refused to fulfill his responsibilities to administer the plan. The
independent fiduciary named is Jacqueline M. Carmichael of JM Pension
Advisory, Inc., who, with the plan's remaining trustee, will distribute
the plan’s assets and terminate the plan. |
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“Our goal is to protect employees’ hard-earned
benefits," said Francis Clisham, director of the New York Regional
Office of the Labor Department’s Employee Benefits Security
Administration (EBSA). “When we find an abandoned plan, we take action
to help participants obtain their account balances in the plan.” |
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Employee benefit plans become "orphaned" when
they are abandoned by fiduciaries designated to manage and operate the
plans and their assets. Without plan fiduciaries, participants and
beneficiaries are unable to receive pension distributions or to make
inquiries about their benefits. |
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Walter Ruttgeizzer and Joseph Pavia were the sole
trustees of the plan since 1994. The department’s lawsuit alleged that
since August 9, 2001, Pavia, the company vice-president, refused to
perform his duties under the plan. The plan requires joint administration
by the two trustees. Company president Ruttgeizzer shut down the company
on March 5, 2002. Without Pavia's cooperation, Ruttgeizzer was unable to
distribute the plan's assets and terminate the plan. |
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The plan covers seven participants and held in excess
of $418,000 as of March 2002. |
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The suit, filed on March 24 in federal district court
in Brooklyn, resulted from an investigation conducted by EBSA’s New York
regional office into alleged violations of the Employee Retirement Income
Security Act (ERISA). |
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Employers and workers can contact the 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. Pinay Flooring Products, Inc. Profit Sharing
Plan)
Civil Action No. 03-1409 |
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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. |
