As an indication that the DOL’s EBSA will be more active in bankruptcy cases where an ERISA plan is abandoned, the agency has filed suit in the Northern District of New York to have an independent fiduciary be appointed to administer the plan and distribute assets. The defunct Syracuse construction company’s assets were sold at auction in 2008 and the firm went bankrupt in January 2010, but no one assumed responsibility for the plan.
Last December the DOL announced a proposed rule and related class exemption that will make it easier for Chapter 7 bankruptcy trustees to distribute assets from bankrupt companies’ retirement plans. New York Times columnist Gretchen Morgenstern took up the cause last year as well.
