Labor Department Obtains Appointment of Independent Fiduciary for Abandoned New York 401(k) Plan

Archived News Release — Caution: Information may be out of date.

New York, New York - The U.S. Department of Labor has obtained a federal court order appointing Jacqueline Carmichael as the independent fiduciary to manage the abandoned 401(k) plan of IFrame, Inc., New York, New York.

The company’s 401(k) plan was abandoned when it ceased operations in June 2002 and the plan’s two trustees refused to fulfill their fiduciary duties to the plan or appoint a successor trustee. Plans become “orphan plans” when they are abandoned by all fiduciaries designated to manage and operate them and their assets. After the plan was abandoned, participants were unable to access their 401(k) accounts or obtain any information about their accounts.

According to Jonathan Kay, New York regional director of the Labor Department’s Employee Benefits Security Administration (EBSA), the department filed suit against the plan in the U.S. District Court for the Southern District of New York. Carmichael will administer the plan; distribute assets to participants, beneficiaries and other creditors of the plan; and implement its orderly termination.

The custodian of the plan is Oppenheimer Funds. The Labor Department believes the approximate value of the plan’s assets at present is $169,380 for some 32 participants.

Said Kay, “Our legal action demonstrates that the department is committed to doing everything in its power to protect the retirement benefits promised to workers who participate in plans such as this.”

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health and other benefits of millions of American workers and their families. Employers and workers can contact the New York regional office at 212.607.8600 or EBSA’s toll free number at 1.866.444.EBSA (3272) for help with problems relating to private-sector retirement and health plans.

(Chao v. IFrame, Inc. 401(k) Plan)
Civil Action No. 05-CV-10792

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Archived News Release — Caution: Information may be out of date.

Contact Name: John M. Chavez
Phone Number: 617.565.2075