Labor Department Sues Officers of Monroe, Wisconsin Business to Restore Delinquent Retirement and Health Plan Contributions

Archived News Release — Caution: Information may be out of date.

Chicago, Illinois - The U.S. Department of Labor has sued former corporate officers of Monroe Cheese Corp., Monroe, Wisconsin, for failing to forward employee contributions to the company’s pension and health plans and retaining the contributions co-mingled with the general operating assets of the company.

The lawsuit, filed in U.S. District Court for the Western District of Wisconsin, also alleges that David L. and William B. Rufenacht filed documents with the U.S. Department of Labor and the plan participants that led participants to believe their contributions to the retirement plan were forwarded to the plan.

“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 Kenneth Bazar, director of the Chicago regional office of the department’s Employee Benefits Security Administration (EBSA).

The Rufenachts allegedly failed to remit contributions deducted from employees’ paychecks to the retirement savings plan at various times from November 1999 through October 2004, in violation of the Employee Retirement Income Security Act (ERISA). In addition, the defendants allegedly failed to remit health plan premiums withheld from participants’ pay to the plan as required by law.

The suit seeks to require that the defendants restore all contributions plus interest, be removed as plan trustees, and correct any prohibited transactions. The department also asks that the court appoint an independent fiduciary to terminate the retirement plan and distribute its assets to the participants and beneficiaries.

The suit resulted from an investigation conducted by the Chicago regional office of EBSA. Employers and workers can reach the Chicago office at 312.353.6976 or through EBSA’s toll-free number, 1.866.444.EBSA (3272), for help with problems relating to private-sector retirement and health plans.

In fiscal year 2005, EBSA achieved monetary results of $1.7 billion related to the pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Rufenacht
Civil Action No. 06-C-0309-S

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

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

Contact Name: Brad Mitchell
Phone Number: 312.353.6976