News Release

U.S. Department of Labor For Immediate Release:

Office of Public Affairs Thurs., Feb. 6, 2003
Boston, Mass. Contact: Gloria Della
BOS 2003-020 (202) 693-8664

Independent Fiduciary Appointed to Abandoned 401(K) Plan

Of Defunct New York City Publishing Company
NEW YORK—The U. S. Department of Labor obtained a judgment on Jan. 31, 2003, appointing the
Benefits Advantage, Inc. as the independent fiduciary of The Publications Company 401(k) plan in New
York City and giving the firm authority to distribute 401(k) assets to plan participants. The plan was
abandoned by plan officials, leaving participants without access to or information about their plan
accounts.

“Our goal is to protect the hard-earned benefits promised by employers," said Francis Clisham, director
of the New York Regional Office of the Labor Department’s Employee Benefits Security Administration
(EBSA).

Plans become "orphan plans" when they are abandoned by all plan fiduciaries designated to manage and
operate the plans and their assets. Without a plan fiduciary, participants and beneficiaries are unable to
receive pension distributions or to make inquiries about their benefits.

The company ceased operations in 1999. The 401(k) plan covered seven participants and has
approximately $100,000 in assets held in trust by the Lincoln National Life Insurance Company, which is
named to obtain relief for the plan.

The suit alleges that the whereabouts of Simon Cowen, the plan’s sole trustee, are unknown. It is believed
he relocated to England, but he has not responded to communications from the Labor Department or a
plan participant. Successor plan officials were not appointed to operate the plan.

The Labor Department’s suit alleges that violations of the Employee Retirement Income Security Act
(ERISA) occurred when the now-defunct company failed to appoint a successor trustee to administer and
terminate the plan.

The suit, filed on Oct. 4, 2002, in U.S. District Court for the Southern District New York in New York
City, resulted from an investigation conducted by EBSA’s New York Regional Office into alleged
violations of ERISA. Employers and workers can contact the regional office at (212) 337-2462 or EBSA’s
toll free number, 1-866-444-EBSA (3272), for help with any problems relating to private-sector pension
and health plans.
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(Chao v. The Publications Company 401(k) Plan)

Civil Action No. 02 CV 7937

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