U.S. Labor Department obtains default judgment against defunct Blackstone, Virginia, company to protect workers’ 401(k) plan

Blackstone, Virginia – The U.S. District Court for the Eastern District of Virginia, Richmond Division, has issued a default judgment against OSF America Inc. removing the former Blackstone company as fiduciary of its tax deferred savings plan.

The order resolves a lawsuit filed by the U.S. Department of Labor in November 2009 alleging that the company abandoned its plan without distributing the assets when it ceased operations in 2002. Under the judgment, Metro Benefits Inc. of Pittsburgh, Pennsylvania, is authorized to terminate the plan and distribute plan assets to participants and beneficiaries.

“This action will protect the interests of the plan’s participants who need access to their retirement savings,” said Mabel Capolongo, director of the department’s Employee Benefits Security Administration in Philadelphia, Pennsylvania. “Employers cannot abandon 401(k) plans when a company goes out of business.”

The plan had 56 participants and approximately $100,000 in assets as of May 1, 2009, the latest data available.

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. Employers and workers can reach EBSA’s Washington District Office at 202.693.8700 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans. For more information, visit www.dol.gov/ebsa.

Solis v. OSF America, Inc.
Civil Action Number: 3:09-CV-741

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