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Compliance May 25, 2012
DOL Frees Assets for 401(k) Plan
The Department of Labor appointed an independent
fiduciary to manage the 401(k) plan of a now-defunct New Jersey company in the
wake of a lawsuit.
Reported by Jay Polansky
The agency named M. Larry Lefoldt of Lefoldt & Co. PA as the fiduciary of Worldwide Trade Resources Inc.’s 401(k) plan, which has 52 participants and about $2.2 million in assets.
The department’s suit alleged that the company, in Weehawken, New Jersey, 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 has the authority to manage the plan, distribute assets to eligible participants and beneficiaries and terminate the plan.