Wednesday, December 16, 2009

DOL Sues Virginia Company For Abandoning 401(k) Plan

The U.S. Department of Labor ("DOL") has filed a lawsuit to obtain appointment of an independent fiduciary to oversee the 401(k) plan of Global System Enterprises Inc., a defunct company formerly located in Arlington, Virginia. The company managed the plan until May 2005 when it ceased operations. Since that time, no one has taken fiduciary responsibility for the operation and administration of the plan and its assets. As a result, the plan’s participants and beneficiaries have been unable to gain access to or information about their individual balances. The suit, Solis v. Global System Enterprises Inc., Civil Action Number: 1:09-cv-01351-LMB-IDD, was filed in federal court in Virginia and seeks to appoint an independent fiduciary to terminate the plan and distribute plan assets to participants and beneficiaries.