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

Arlington, Virginia – The U.S. Department of Labor has filed a lawsuit to obtain appointment of an independent fiduciary to oversee the 401(k) plan of Global System Enterprises Inc., a defunct company formerly located in Arlington.

“Abandonment of a retirement plan is not an option for companies that go out of business,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration (EBSA) in Philadelphia, Pennsylvania. “Employers have a legal responsibility to protect the interests of plan participants.”

The company managed the plan until May 2005 when it ceased operations. Since that time, no one has taken fiduciary responsibility for the operation and administration of the plan and its assets. As a result, the plan’s participants and beneficiaries have been unable to gain access to or information about their individual balances.

The suit, filed in the U.S. District Court for the Eastern District of Virginia, seeks to appoint an independent fiduciary to terminate the plan and distribute plan assets to participants and beneficiaries.

As of September 4, 2009, the plan had eight participants and approximately $60,257 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. Additional information can be found at www.dol.gov/ebsa.

Solis v. Global System Enterprises Inc.
Civil Action Number: 1:09-cv-01351-LMB-IDD

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