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DOL sues to appoint fiduciary for orphan 401(k)

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in Compensation and Benefits,Human Resources

When Authorized Factory Service closed its doors in 2002, the Coraopolis, Pa., appliance company also stopped providing information to former employees about their 401(k) retirement funds. Plan members have been unable to access statements or their money since then.

The U.S. Department of Labor’s Employee Benefits Security Ad­min­istration has filed suit to have the court appoint a fiduciary to replacing the shut­­­­­­­­­­­­­­­tered company as plan administrator, close the plan and distribute its assets. Once the new fiduciary takes over, plan members will have the option of taking a distribution in cash or rolling over the plan’s assets into their own IRAs.

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