Staff Writer, Aug 23, 2007Massachusetts Trucking Company Files for Bankruptcy
Springfield, MA - The federal bankruptcy court in Springfield, Massachusetts has been petitioned by the U.S. Department of Labor to release 401(k) plan contributions that were withheld from employees' paychecks of the bankrupt company N&B Express Inc. In South Deerfield, Massachusetts, N&B Express Inc. is an interstate trucking company. On September 2, 2005, the company filed for protection of the bankruptcy court. Two 401(k) plans were sponsored and administered for its employees by the company. These plans were known as the N&B Express Inc. Non-Union 401(k) Profit Sharing Plan and the N&B Express Inc. Savings and Retirement Plan.
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Enforced by the U.S. Labor Department, employees that participated in these benefit plans chose to have contributions withheld from wages by N&B. These contributions become assets of the plans under the Employee Retirement Income Security Act, also known as ERISA. This is a federal law that is enforced by the Labor Department's Employee Benefits Security Administration, which protects employee benefit plans and private sector pension plans.
According to the lawsuit, employees' contributions were not transferred to the plans nor did they come from the company's general assets between May 2005 and June 2005. Between this time periods the total withheld amount was $16,044 regarding to contribution to the savings plan and there was $10,627 that was withheld for the profit sharing plan. If this news story sounds similar to something that happened to you, you may be in need of legal advice of a Bankruptcy Lawyer in Massachusetts.
According to the complaint, it is requested that the court order N&B to return any of the employees' contributions due to the fact it doesn't belong to the company, but belongs to the plans and the beneficiaries and participants. Related to the 401(k) and pension, EBSA achieved monetary results of $1.7 billion in fiscal year 2005.
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