U.S. Labor Department obtains federal court order appointing independent fiduciary for abandoned 401(k) plan of Bronx, N.Y., employer

Archived News Release — Caution: Information may be out of date.

New York - The U.S. Department of Labor has obtained a court order appointing an independent fiduciary to oversee, terminate and pay out benefits from the abandoned Sabe Restaurant 401(k) Plan, Bronx, New York.

Sabe Restaurant Corp. was located at 599 East Tremont Avenue in Bronx, New York. The plan has been without a trustee since around August 13, 2004, when Urbano M. Benito and Margaret Benito started, but failed, to complete the termination of the plan. At that time, the plan was left without a trustee to manage its assets, as required by the Employee Retirement Income Security Act. As a result, participants and beneficiaries cannot obtain plan information or access accounts to make investments or collect retirement benefits.

The plan had 14 participants and approximately $71,051 in assets as of March 2006, the latest information available to the Labor Department. State Street Bank is the custodian of the funds.

“When a plan is abandoned, so are the workers who invested in it,” said Jonathan Kay, director of the department’s Employee Benefits Security Administration (EBSA) New York Regional Office in Manhattan. “We took this action so the plan will be properly administered and its participants can access the funds that rightly belong to them.”

The department’s legal action resulted from an investigation conducted by EBSA’s New York Regional Office. Employers and workers can contact that office at 212.607.8600 or toll at 1.866.444.EBSA (3272) for help with problems relating to private sector pension and health plans.

In fiscal year 2006, EBSA achieved monetary results of $1.4 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Sabe Restaurant 401(k) Plan
Civil Action Number: 07-CV-758-LAK

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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