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Release Date: 12/30/2002
Release Number: BOS 2002-254
Contact Name: Gloria Della
Phone Number: 202.693.8664
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New York, New York - The U.S. Department of
Labor filed a lawsuit on December 23, 2002 to obtain a court-appointed
independent fiduciary to manage the 401(k) plan of defunct Hayden Wegman,
Inc. of New York City for the benefit of the workers. |
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“The Department of Labor is committed to doing
everything we can to assist workers who have been abandoned by employers
and fiduciaries,” said U.S. Secretary of Labor, Elaine L. Chao. “Through
our focused enforcement program, we have conducted nearly 600
investigations into “orphaned” plans and returned $54 million to
workers. To assure orderly plan operations, the department also arranged
for independent fiduciaries to run 54 of these plans.” |
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Plans become “orphan plans” when they are abandoned
by all plan fiduciaries designated to manage the plans and their assets.
The 401(k) plan has been orphaned since the plan’s sole trustee, Robert
Harvey, resigned on October 29, 1999. Harvey was the former president and
chief executive officer of the company. |
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The Labor Department's lawsuit alleges that a violation
of the Employee Retirement Income Security Act (ERISA) occurred when
Harvey failed and refused to perform his duties for the plan from October
1999 until the present time and to appoint a replacement trustee. |
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The department is seeking a court order to remove plan
fiduciary Robert Harvey as trustee of the plan and to appoint an
independent fiduciary to replace him. |
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Hayden Wegman, Inc. was an engineering firm that
sponsored the plan and served as the plan’s administrator. The 401(k)
plan covered 45 employees and has approximately $850,000 in assets. |
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The suit was filed in federal district court in New
York. Employers and workers can contact the regional office on PWBA’s
Toll-Free Employee & Employer Hotline number, 1.866.275.7922, for help
with any problems relating to private-sector pension and health plans. |
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(Chao v. The Hayden Wegman, Inc. 401(k) Pension Plan
Civil Action No. 02CV10163) |
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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. |
