The DOL’s Employee Benefits Security Administration announced that it has approved a process for JP Morgan, acting as custodian, and ADP as record keeper, to terminate and wind up 180 abandoned plans.
Plans are considered abandoned if a qualified termination administrator determines that the sponsor no longer exists, cannot be located or is otherwise unable to maintain the plan. The problem, highlighted by one plan abandoned in 2006, is that participants have no access to their money. In all, $75 million of distributions have been made under this program.
The EBSA is also getting active with plans of bankrupt companies, as we recently reported, with a lawsuit filed in New York.
