For Immediate Release: March 6, 2013
Contact: Joanna Hawkins or Leni Fortson
Phone: 215-861-5101 or 215-861-5102
Email: email@example.com or firstname.lastname@example.org
Release Number: 13-366-PHI (ebsa 13-017)
US Labor Department obtains consent judgment appointing independent
fiduciary for 401(k) plan of Largo, Md., defense contractor
LARGO, Md. - The U.S. Department of Labor has obtained a consent judgment removing NW Systems Inc., Nathan Williams and Jesus Rivera as fiduciaries of the NW Systems Inc. 401(k) plan and appointing GTrust Financial Partners, of Topeka, Kan., as an independent fiduciary with authority to administer the plan.
The judgment resolves a department lawsuit alleging that the defendants have failed to take fiduciary responsibility for the operation and administration of the plan and its assets as a result of a dispute over the rightful ownership of NW Systems Inc. that began in November 2012.
“Plan fiduciaries are legally responsible for acting in the best interest of plan participants,” said Marc I. Machiz, regional director of the Employee Benefits Security Administration in Philadelphia. “This resolution ensures that the plan assets deposited in the trust fund will be protected and properly managed.”
As of December 31, 2012, the plan had 135 participants and a total of $2,629,916 in assets.
The department’s legal action resulted from an investigation by EBSA’s Washington District Office. It was litigated by the department’s Regional Office of the Solicitor in Philadelphia. Employers and workers can contact EBSA at 215-861-5300 or toll-free at 866-444-3272 for help with problems relating to private sector retirement and health plans. For more information, visit www.dol.gov/ebsa.
Harris v. NW Systems Inc., et. al.
Civil Action No.: 1:13-cv-00488-JFM
U.S. Department of Labor news materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.