US Labor Department obtains court-appointed independent fiduciary for 401(k) plan of defunct Shelton, Conn., company

NEW HAVEN, Conn. – The U.S. Department of Labor has obtained a court order appointing an independent fiduciary to manage the 401(k) plan of defunct Miller Agency Inc. of Shelton, Conn.

Under the order, entered in the U.S. District Court for the District of Connecticut, the court appointed Northeast Retirement Services Inc. of Woburn, Mass., to serve as the independent fiduciary of the Miller Agency Inc. 401(k) Profit Sharing Plan and Trust. The independent fiduciary has the authority to manage the plan, distribute its assets to the plan’s participants and beneficiaries, and terminate the plan.

The 401(k) plan was sponsored by the company to provide retirement benefits to the plan participants, who were employees of Miller Agency Inc. The company ceased operations in May 2008. Beginning in 2006, James P. Miller was president and sole director of the company, and served as the trustee and administrator of the plan. Miller, who died Dec. 1, 2008, was the only authorized signatory of the plan.

Prior to ceasing operations in May 2008, the company failed to take steps to ensure the ongoing prudent administration of the plan. As a result, former employees of the company have been unable to access their 401(k) accounts. Under the Employee Retirement Income Security Act, plans must be managed by fiduciaries. In the absence of a plan fiduciary, participants and beneficiaries cannot obtain plan information, make investments or collect retirement benefits. As of June 30, 2009, the plan had six participants and assets totaling $128,147.

“It’s unfortunate when the closure of a company ultimately results in the workers who have lost their jobs also being unable to access the benefits they have earned,” said Edward Maloney, acting regional director of the Labor Department’s Employee Benefits Security Administration in Boston, Mass. “We took this legal action to ensure that the plan is properly managed so that its participants can finally gain access to their retirement assets.”

The case was investigated by EBSA’s Boston Regional Office. Employers and workers can contact that office at 617-565-9600 or may call EBSA’s toll-free number, 866-444-3272, for help with any 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 about the agency can be found at http://www.dol.gov/ebsa.

Solis v. Miller Agency Inc.
Civil Action Number: 3:10-CV-01425

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