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Release Date: 12/04/2001
Release Number: V-80
Contact Name: Sharon Morrissey
Phone Number: 202.693.8664
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Chicago, Illinois - The U.S. Department of Labor
filed a suit against the now defunct Kendallville (Indiana) Castings,
Inc., to obtain a court-appointed trustee to administer and terminate the
company’s union and non-union pension plans. |
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According to the suit, filed on December 4 in federal
district court in Ft. Wayne, Indiana, participants and beneficiaries of
the plans have been unable to obtain distributions from their individual
accounts and their calls to the company have gone unanswered since the
company ceased operating in 1994 and was administratively dissolved by the
state of Indiana on November 2, 1994. |
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The department alleges that the plans have become
orphan plans because the sole trustee, Robert A. Johnson, left the state
in 1994 with no forwarding address, the company did not remove him as
trustee and did not appoint a successor to terminate the plan. In
addition, Kendallville Castings failed to notify the plans’ participants
that the company was being dissolved. During this time, the 16
participants and funds, which totaled $9,707.41 as of December 31, 2000,
have been waiting for court action to resolve the issue and free up their
accounts. |
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Plans become orphan plans when they are
abandoned by all plan fiduciaries designated to manage and operate the
plans and their assets. As a result, participants and beneficiaries are
unable to receive pension distributions and to make inquiries about their
benefits. Kendallville Castings, Inc. created the two plans December 31,
1987. |
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The investigation leading to the civil lawsuit was
conducted by the Chicago regional office of the department’s Pension and
Welfare Benefits Administration into alleged violations of federal pension
law, the Employee Retirement Income Security Act of 1974. |
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(Chao v. Kendallville Castings, Inc. et al
Civil Action No. 1:01CV0439) |
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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 202.693.7775. |
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