Compliance May 25, 2012

DOL Frees Assets for 401(k) Plan

The Department of Labor appointed an independent fiduciary to manage the 401(k) plan of a now-defunct New Jersey company in the wake of a lawsuit.

Reported by

Jay Polansky

The agency named M. Larry Lefoldt of Lefoldt & Co. PA as the fiduciary of Worldwide Trade Resources Inc.’s 401(k) plan, which has 52 participants and about $2.2 million in assets.

The department’s suit alleged that the company, in Weehawken, New Jersey, had not named a fiduciary as required by the Employee Retirement Income Security Act (ERISA) by the time the company closed around October 2010. As a result, the plan’s participants and beneficiaries could not obtain plan information, make investments or collect retirement benefits.

Lefoldt has the authority to manage the plan, distribute assets to eligible participants and beneficiaries and terminate the plan.

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