US - Former Rycenga Homes trustee and president Ronald Retsema has been ordered to pay more than US$1.1m into the company's 401(k) plan and been barred from serving as a fiduciary to employee benefit plans.
The judgement stems from a lawsuit filed by the Department of Labor (DoL) that alleged Retsema violated the Employee Retirement Income Security Act between August 1992 and May 2004 by transferring more than $2.5m from the 401(k) plan to the business and failing to remit contributions deducted from employees’ paychecks to the plan.
The DoL found that over $1m in assets and lost earnings had not been restored to the pension plan, and, in a separate bankruptcy action, the court ordered Retsema to pay any debts owed to the 401(k).
US Labor Secretary Elaine Chao [pictured] said Retsema had “robber” workers of their retirement security, and added: “Our legal action seeks to recover these workers’ 401(k) funds and prevent the plan trustee from occupying such positions of trust again.”
By Damian Clarkson
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.