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Release Date: June 19, 2006
Release Number: 06-991-SAN (SF-64)
Contact Name: Deanne Amaden
Phone Number: 415.975.4741
San Francisco, California - The U.S.
Department of Labor has filed a suit against the former president and
CEO of a Bay Area technology firm to clear the way to returning $149,500
in 401(k) assets to participants in the firm’s retirement plan.
The action, filed in U.S. District Court in San
Francisco, would remove the plan’s fiduciary, Richard Baldyga, the
former president and CEO of Alameda-based RadixOne. The company was
formerly known as ReSolutions Group.
The Labor Department alleges that Baldyga, who was
responsible for distributing assets in the plan after the company closed
in 2003, failed to take the necessary steps to make distributions to
former employees after making distributions to himself and some plan
participants. The suit asks the court to remove Baldyga as a plan
fiduciary, permanently bar him from service as a fiduciary in the
future, and appoint an independent fiduciary to terminate the plan and
distribute assets to eligible participants. The suit also asks that
Baldyga cooperate with an independent fiduciary and pay the costs
associated with terminating the plan.
“The Labor Department is committed to protecting
workers’ benefits,” said Ann L. Combs, assistant secretary of the
Labor Department’s Employee Benefits Security Administration (EBSA).
“Our action ensures that the former employees of RadixOne will now
have access to their retirement assets.”
On May 22, new Labor Department rules took effect
that facilitate a voluntary, safe and efficient process for winding up
the affairs of abandoned plans. The new rules allow financial
institutions to take responsibility and distribute the assets of 401(k)
plans to affected workers and their families. The department estimates
that 1,650 such plans are abandoned each year. Information about the new
rules is available under the Abandoned Plan Program section of EBSA’s
Web site at www.dol.gov/ebsa.
In fiscal year 2005, EBSA achieved monetary results
of $1.7 billion related to pension, 401(k), health and other benefits
for millions of American workers and their families. Employers and
workers with questions or concerns regarding their private-sector
pension and health plans can contact EBSA’s regional office in San
Francisco at 415.975.4600 or EBSA’s toll free number, 1.866.444.EBSA
(3272).
(Chao v. Baldyga)
Civil Action No. 3:06-cv-3568
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