Labor Department Sues Bay Area Executive over Retirement Plan

Archived News Release — Caution: Information may be out of date.

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Archived News Release — Caution: Information may be out of date.

Contact Name: Deanne Amaden
Phone Number: 415.975.4741