U.S. Department of Labor sues to protect participants of 401(k) profit-sharing plan

Englewood Cliffs, N.J. – The U.S. Department of Labor has filed a lawsuit to obtain the appointment of an independent fiduciary to oversee the 401(k) profit-sharing plan of defunct Collective Communications. The company's last known address was 375 Sylvan Ave. in Englewood Cliffs.

"We took this legal action to ensure that participants are able to recoup the retirement savings they entrusted to this plan," said Mabel Capolongo, regional director of the department's Employee Benefits Security Administration (EBSA) in Philadelphia, Pa.

The company created the plan Oct. 1, 2000, and managed it until ceasing operations in 2001. Since that time, no one has taken fiduciary responsibility for the operation and administration of the plan and its assets, nor has a successor been appointed to assume that responsibility.

The suit, filed in the U.S. District Court for the District of New Jersey, seeks to appoint an independent fiduciary to administer the plan and to distribute its assets to eligible participants and beneficiaries. As of July 9, 2009, the plan had eight participants and $30,659.94 in assets.

The suit resulted from an investigation conducted by EBSA's Philadelphia Regional Office. Employers and workers may contact EBSA's Philadelphia Regional Office at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private sector pension and health plans.

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. Collective Communications, Corp., 401(k) Profit Sharing Plan
Civil Action Number: 09-CV-6338

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202.693.7828 or TTY 202.693.7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.