U.S. Labor Department secures retirement plan assets for employees of former Michigan Air Control Distributing company in Grand Rapids, Michigan

Archived News Release — Caution: Information may be out of date.

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Archived News Release — Caution: Information may be out of date.