U.S. Labor Department sues to appoint fiduciary for benefit plan of defunct Keasbey, NJ, company to protect 401(k) plan participants

Keasbey, New Jersey – The U.S. Department of Labor has sued to have an independent fiduciary appointed to oversee the abandoned 401(k) plan of Krajack Tank Lines Inc., a defunct company located in Keasbey.

"We took this action to protect the participants who entrusted their savings to the trustees of the plan," said Jonathan Kay, regional director of the department's Employee Benefits Security Administration in New York. "Employers have a legal obligation to properly manage retirement plans when a company goes out of business."

Krajack Tank Lines Inc. managed the plan until 2001. 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 been unable to access their individual account balances. The company was acquired by Dana Transport Inc. in June 2003.

The lawsuit, filed in the U.S. District Court for the District of New Jersey, seeks to appoint an independent fiduciary to administer the plan and distribute its assets to eligible participants and beneficiaries. As of September 2009, the plan had 12 participants and $72,549 in assets.

The case was investigated by EBSA's New York Regional Office. Employers and workers can reach that office at 212.607.8600 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 http://www.dol.gov/ebsa.

Solis v. Krajack Tank Lines Inc.
Civil Action Number: 2:10-civ-2694

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