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Release Date: May 13, 2008
Release Number: 08-657-CHI
Contact Name: Brad Mitchell or Scott Allen
Phone Number: 312.353.6976
Grand Rapids, Michigan – The federal
district court in Grand Rapids has granted a consent judgment to the
U.S. Department of Labor that allows for recovery of approximately
$25,000 in 401(k) plan assets and interest owed to the Michigan Air
Control Distributing Profit Sharing 401(k) Plan in Grand Rapids.
The court action resolves a lawsuit in which the
department alleged that Jack A. Baas, a fiduciary to the plan, failed to
remit funds withheld from employees’ paychecks to their retirement
accounts in 2006. The Labor Department charged that, instead, Baas kept
plan assets co-mingled with those of Michigan Air Control in violation
of the Employee Retirement Income Security Act.
“The department will act when plan fiduciaries fail
to carry out their duty to protect the retirement plan assets held on
behalf of participants,” said Joseph Menez, director of the Cincinnati
Regional Office of the Labor Department’s Employee Benefits Security
Administration (EBSA).
The legal action resulted from an investigation
conducted by EBSA’s Cincinnati office. Employers and workers can reach
that office at 859.578.4680 or toll-free at 866.444.3272 for help with
problems relating to private sector retirement and health plans. In
fiscal year 2007, EBSA achieved monetary results of $1.5 billion related
to pension, 401(k), health and other benefits for millions of American
workers and their families.
Chao v. Baas
Civil Action Number: 1:08cv414
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