U.S. Department of Labor sues defunct Blackstone, Va., company to protect participants of abandoned retirement plan

Blackstone, Va. – The U.S. Department of Labor has sued to have an independent fiduciary appointed to oversee the tax deferred savings plan of OSF America Inc., a defunct company formerly located in Blackstone.

"We took this action to ensure that plan participants are able to recover the money they entrusted to the plan for their retirement savings," said Mabel Capolongo, regional director of the department's Employee Benefits Security Administration (EBSA) in Philadelphia. "Employers have a legal obligation to properly wind down retirement plans when a company goes out of business."

OSF America Inc. managed the plan until the company ceased operations in 2002. Since that time, the company has not taken responsibility for the operation and administration of the plan and its assets, nor has it appointed anyone to assume that responsibility. As a result, plan participants and beneficiaries have not been able to access their individual account balances.

The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, Richmond Division, seeks to remove OSF America from its position as plan fiduciary and appoint an independent fiduciary to terminate the plan and distribute its assets to participants and beneficiaries. As of May 1, 2009, the plan had 56 participants and more than $100,000 in assets.

The case was investigated by EBSA's Washington District Office. Employers and workers can reach that office at 202-693-8700 or toll free at 866-444-3272 for help with problems relating to retirement and health benefits. In fiscal year 2009, EBSA achieved monetary results of $1.3 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Solis et al v. OSF America, Inc. et al
Civil Action Number: 3:09-cv-741

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