U.S. Labor Department obtains appointment of independent fiduciary for abandoned 401(k) plan of defunct Whitman, Massachusetts, company

Boston — The U.S. Department of Labor has obtained a federal court order appointing an independent fiduciary to manage the abandoned 401(k) plan of Autolines Inc., a company formerly located in Whitman, Massachusetts.

The consent judgment and order, entered in the U.S. District Court for the District of Massachusetts, appointed Northeast Retirement Services Inc. of Woburn, Massachusetts, to serve as the independent fiduciary of the Autolines 401(k) Plan. Northeast Retirement Services will administer the plan, distribute the assets to eligible participants and beneficiaries, and then terminate the plan.

The Labor Department filed suit under provisions of the Employee Retirement Income Security Act (ERISA), the federal law that protects private sector employee pension and benefit plans. The suit alleged that the company, which sponsored the plan, had ceased operations in 2005 and that the former owner of the company had abandoned his fiduciary responsibility to the plan. The plan’s 11 participants, all former employees of the company, were left unable to access their plan accounts, since ERISA requires a pension plan to be administered by a lawful fiduciary.

As of May 1, 2008, the latest data available, the plan’s assets totaled approximately $190,979 held in trust by John Hancock Life Insurance Co.

“I am pleased that we were able to resolve this matter to the benefit of the remaining participants of this 401(k) plan,” said Jean Ackerman, regional director in Boston for the Labor Department’s Employee Benefits Security Administration (EBSA). “We took this legal action to ensure that the plan is properly managed so that its participants finally can gain access to their retirement assets.”

This case was investigated by EBSA’s Boston Regional Office. Employers and workers seeking help with problems relating to private sector pension and health plans can reach the Boston office at 617.565.9600 or the agency toll-free at 866.444.3272. 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. Autolines Inc.
Civil Action Number: 1:09cv11734

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