U.S. Labor Department Obtains $1.1 Million Judgment Restoring Assets to Spring Lake, Michigan 401(k) Plan

Archived News Release — Caution: Information may be out of date.

Grand Rapids, Michigan - The U.S. Department of Labor has obtained a judgment requiring a former trustee of the Rycenga Homes Inc. Profit Sharing 401(k) Plan in Spring Lake, Michigan, to restore $1,132,229 to the plan. Ronald Retsema is also permanently barred from serving as a fiduciary or service provider to employee benefit plans governed by the Employee Retirement Income Security Act (ERISA). The judgment resolves a lawsuit filed by the Labor Department which alleged that Retsema, president of Rycenga Homes and the plan’s trustee, violated ERISA between August 1992 and May 2004 by transferring more than $2.5 million from the 401(k) plan to the business and failing to remit contributions deducted from employees’ paychecks to the plan.

“Workers who thought they were contributing to their 401(k) retirement plan were robbed of their retirement security,” said U.S. Labor Secretary Elaine L. Chao. “Our legal action seeks to recover these workers’ 401(k) funds and prevent the plan trustee from occupying such positions of trust again.”

The department found that over $1 million in assets and lost earnings were not restored to the 401(k) plan. In a separate bankruptcy action, the court ordered Retsema to pay any debts owed to the 401(k). The suit, filed in federal district court in Michigan, resulted from an investigation conducted by the Cincinnati regional office of the Labor Department’s Employee Benefits Security Administration (EBSA). Employers and workers can reach the Cincinnati regional office at 859.578.4680 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

Last year, EBSA recovered $1.7 billion in pension, 401(k), health and other benefits for American workers and their families.

Chao v. Retsema
Civil Action No. 1:05-cv-323

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Archived News Release — Caution: Information may be out of date.

Contact Name: Brad Mitchell
Phone Number: 312.353.6976