U.S. Department of Labor obtains settlement giving former Cookeville, Tennessee, company participants access to their retirement funds

Cookeville, Tennessee – The U.S. Department of Labor has obtained a consent judgment and settlement agreement appointing an independent fiduciary to manage and distribute the retirement assets of defunct Renewable Resources Inc. of Cookeville.

The order, issued by the U.S. District Court for the Middle District of Tennessee, appoints Larry Lefoldt as the independent fiduciary for the purpose of terminating the plan and distributing its assets in accordance with plan provisions.

Without the court-appointed independent fiduciary to oversee this process, plan participants had no means of obtaining a distribution of their assets.

“We are pleased that plan participants will be able to access their retirement funds and use them for their benefit,” said R.C. Marshall, regional administrator for the department’s Employee Benefits Security Administration (EBSA) in Atlanta.

In February, the Labor Department sued the former company alleging that it violated provisions of the Employee Retirement Income Security Act when it ceased operations but failed to terminate its profit-sharing plan and trust, and ensure that the funds in the plan were appropriately distributed to participants.

Renewable Resources Inc. was a re-manufacturer of computer printers and toner cartridges with a facility in Cookeville.

Employers with similar problems who are not yet subjects of EBSA investigations may be eligible to participate in the department’s Voluntary Fiduciary Correction Program. Participation requires employers to make workers whole but allows them to avoid EBSA enforcement actions and civil penalties as well as any applicable excise taxes.

In fiscal year 2008, EBSA achieved monetary results of $1.2 billion related to pension, 401(k), health and other benefits for millions of American workers and their families. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. For more information, see www.dol.gov/ebsa.

Solis v. Renewable Resources Inc.
Civil Action Number 3:09-cv-148

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