Get more! Sign up for PLANSPONSOR newsletters.
Compliance May 24, 2012
DOL Frees Assets for 401(k) Plan
May 24, 2012 (PLANSPONSOR.com) – Following a lawsuit, the U.S. Department of Labor appointed an independent fiduciary to manage a defunct New Jersey company’s 401(k) plan.
Reported by PLANSPONSOR staff
The agency named M. Larry Lefoldt of Lefoldt & Co. P.A. as the fiduciary of the Weehawken, New Jersey-based Worldwide Trade Resources Inc.’s 401(k) plan, which has 52 participants and approximately $2.2 million in assets.
The department’s suit alleged that the company had not named a fiduciary as required by the Employee Retirement Income Security Act (ERISA) by the time the company closed around October 2010. As a result, the plan’s participants and beneficiaries could not obtain plan information, make investments or collect retirement benefits.
Lefoldt & Co. has the authority to manage the plan, distribute its assets to eligible participants and beneficiaries, and terminate it.
Jay Polansky
You Might Also Like:
What Does the End of Chevron Deference Mean for the DOL?
It could mean more lawsuits and overturned rules related to retirement plans.
Non-Insurer Plaintiffs Join ACLI in Fiduciary Rule Lawsuit
FSI and SIFMA are also asking for the Retirement Security Rule to be vacated.
DOL Argues That Class Action Waivers in Plan Agreements Are Unenforceable
Most appeals courts have so far agreed with them.