US Labor Department secures appointment of independent fiduciary to administer abandoned North Billerica, Massachusetts, retirement plan

Date of Action: March 9, 2015

Type of Action: Consent Judgment and Order

Name of Defendant: Electronic Business Solutions Inc.

Allegations: The Electronic Business Solutions 401(k) Plan was established in June 1996 to provide retirement benefits for employees of Electronic Business Solutions Inc. of North Billerica, Massachusetts. The company ceased operations in 2002. An investigation by the U.S. Department of Labor’s Employee Benefits Security Administration found that prior to ceasing operations, the company failed to take steps to ensure prudent administration of the plan. The plan lacked a fiduciary with the authority and discretion to manage and control the plan’s assets, operations and administration as required by the Employee Retirement Income Security Act. Without a fiduciary the plan could not be terminated and its 29 participants could not access about $34,356 in plan assets.

Resolution: The Labor Department petitioned the court on Dec. 23, 2014, for appointment of an independent fiduciary. The court has now appointed Northeast Retirement Services of Woburn, Massachusetts, as independent fiduciary to the plan, with authority to administer the plan and ensure the proper distribution of plan assets to its participants and beneficiaries.

Court: U.S. District Court for the District of Massachusetts

Docket Number:  1:14-cv-14711-RGS

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