U.S. Labor Department secures appointment of independent fiduciary for 401(k) plan of defunct Cherry Hill, New Jersey, company

Cherry Hill, New Jersey — The U.S. Department of Labor has obtained a court order appointing Jacqueline Carmichael as the independent fiduciary of the 401(k) plan of ABC Wireless Inc., a defunct company formerly located in Cherry Hill. The court order gives Carmichael authority to terminate the plan and distribute plan assets to participants and beneficiaries.

“Companies that go out of business have a legal obligation to terminate employee benefit plans, and ensure that participants and beneficiaries have access to their retirement assets,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration (EBSA) regional office in Philadelphia, Pennsylvania.

The judgment resulted from a lawsuit filed by the Labor Department in September 2009 that alleged the company violated the Employee Retirement Income Security Act. The suit alleged that after the company ceased operations in September 2004, the fiduciaries failed to terminate the plan and distribute its assets. As a result, plan participants and beneficiaries were unable to access their individual account balances.

The department’s legal action resulted from an investigation conducted by EBSA’s Philadelphia Regional Office. Employers and workers can contact that 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.

Solis v. ABC Wireless, Inc. 401(k) plan
Civil Action Number 1:09-CV-05004

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