The Labor Department won court approval to remove the fiduciary of Horizon NR LLC Employee Savings Plan and Trust and terminate the plan.
U.S. District Judge Henry Wilhoit in Ashland, Ky., signed the consent order and judgment on Tuesday.
The Employee Benefits Security Administration filed a complaint in March against Horizon and the fiduciary Lance Sogan, who agreed to the consent order without admitting or denying the allegations.
As of September 2015, the 401(k) and profit-sharing plan had 144 participants and $2.4 million in plan assets. The coal producer ceased operating in September 2014, but Mr. Sogan did not terminate the plan, for which Fidelity Management Trust Co. is record keeper Plan assets were not properly distributed and some plan beneficiaries have been unable to collect money from their account, EBSA said in a statement.
Lefoldt & Co. was appointed independent fiduciary charged with distributing assets to participants and beneficiaries, and terminating the plan.
In 2004, the Pension Benefit Guaranty Corp. took over the defined benefit plan for Horizon Natural Resources Co., when the company liquidated in bankruptcy. At the time, the Horizon Natural Resources LLC Pension Plan was 34% funded, with $45 million in assets to cover almost $132 million in benefit promises.