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New York, New York - The U.S. Department of
Labor has sued under the Employee Retirement Income Security Act (ERISA)
to obtain court appointment of an independent fiduciary to manage the
abandoned 401(k) plan of YOUpowered, Inc., a now defunct company formerly
located at 90 William Street, Suite 105, New York, New York.
The department’s suit, filed in the U.S. District
Court for the Southern District of New York, also asks the court to
authorize termination of the plan and the distribution of $16,525 in plan
assets to eligible participants.
“The department took legal action to ensure that the
participants in the YOUpowered 401(k) plan receive their promised
benefits,” said Jonathan Kay, acting director of the New York regional
office of the department’s Employee Benefits Security Administration (EBSA),
which investigated the case.
The investigation revealed that YOUpowered went out of
business several years ago, although the exact date of dissolution is
unknown, and that the 401(k) plan has been left without management ever
since. EBSA’s investigation was based on a complaint from a plan
participant who was unable to obtain a distribution from the plan. The
plan has approximately 10 remaining participants.
Plans become “orphan plans” when they are abandoned
by all fiduciaries designated to manage and operate them and their assets.
Citistreet is the plan’s contracted service provider
and the funds are held by Travelers Life & Annuity. Neither entity can
allow distribution of the plan’s remaining assets without a court order.
In fiscal year 2004, EBSA achieved record monetary
results of $3.1 billion related to 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. Help
with problems relating to private-sector retirement and health plans can
also be obtained by calling EBSA’s toll free number at 1.866.444.EBSA
(3272).
(Chao v YOUpowered 401(k) Plan)
Civil Action No. 05-CV-7814 |
