Hello and thank you for your question.
As described below, your best bet is to telephone the PWBA/EBSA
complaint line toll-free at 1-866-444-3272 (1-866-ASKPWBA).
Here is some information about the government agencies that police
employer 401k plan compliance:
"The Department of Labor (DOL), through the Pension and Welfare
Benefits Administration (PWBA), protects the integrity of pensions,
health plans, and other employee benefits. Included within that
mandate is oversight of 401(k) plan administration. Currently, DOL
regulations require that sums withheld from an employee's paycheck for
the purpose of making a contribution to a 401(k) plan must be
deposited in the participant's account "as of the earliest date on
which such contributions can reasonably be segregated from the
employer's general assets." That date may not be later than the 15th
business day of the month following the month in which the payroll
deduction occurred."
Timely 401(k) Deposits
http://www.fool.com/retirement/retireeport/2001/retireeport010723.htm
"The U.S. Department of Labor's Employee Benefits Security
Administration (EBSA) is the agency charged with enforcing the rules
governing the conduct of plan managers, investment of plan assets,
reporting and disclosure of plan information, enforcement of the
fiduciary provisions of the law, and workers' benefit rights."
Retirement Plans & Benefits
http://www.dol.gov/dolfaq/go-dol-faq.asp?faqid=233&faqsub=ERISA&faqtop=Retirement+Plans+%26+Benefits&topicid=4
"Employee Benefits Security Administration
The Labor Department?s Employee Benefits Security Administration
(EBSA) is the agency charged with enforcing the rules governing the
conduct of plan managers, investment of plan money, reporting and
disclosure of plan information, enforcement of the fiduciary
provisions of the law, and workers? benefit rights. You can call EBSA
toll-free at 1-866-444-3272, or contact the regional EBSA office
nearest you for help.
When you call EBSA to file a complaint, make sure you have the
necessary documents, such as your summary plan description and recent
plan statements, with you. The regional office will ask you a series
of questions to help determine the nature of your complaint. If it?s
warranted, EBSA will then contact your employer and launch an
investigation into the administration of your plan.
EBSA will not disclose your identity to your employer. However, if
your employer discovers that you have filed a complaint, your job will
not be affected. Anti-retaliation provisions protect you from
mistreatment or discrimination and ensure that you can?t be fired."
Where to Look for Help
http://www.nasd.com/Investor/Smart/401k/specialfeatures/special_3b.html
"Ask your employer what's going on. If you don't get immediate
satisfaction, contact the Department of Labor's Employee Benefits
Security Administration. Call 866-444-3272 and explain your situation
to a benefits advisor.
The agency will look into your complaint and might be able to
straighten things out, with or without taking the case to court.
In the end, you and other workers could win payments for lost earnings.
"We have recovered more than $500 million in delinquent employee
contributions," says Ann Combs, an Assistant Secretary of Labor."
Employers Must Make Timely 401(k) Deposits
http://www.kiplinger.com/columns/ask/archive/2004/q0308.htm
Finally, here in EBSA's own words is how you should proceed:
"Information provided by plan participants and beneficiaries is an
important source on which PWBA relies for developing investigations.
Complaints are often the agency's first indications of problems with a
pension or health and welfare plan. If you believe that there is a
problem with your plan, we want to know about it. Please contact the
PWBA Field Office nearest you."
Participant and Beneficiary Complaints
http://www.dol.gov/ebsa/programs/oe/oeconv.htm#section3
Search terms used:
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EBSA
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Clarification of Answer by
richard-ga
on
23 May 2004 19:59 PDT
Hello again.
The compliance requirements and sanctions are provided by the mployee
Retirement Income Security Act (ERISA),
(29 USC §1001 et seq., 29 CFR 2509 et seq.)
http://www4.law.cornell.edu/uscode/29/1001.html
http://www.dol.gov/dol/allcfr/Title_29/Part_2509/toc.htm
"ERISA confers substantial law enforcement responsibilities on the
Department. Part 5 of Title I of ERISA gives the Department authority
to bring a civil action to correct violations of the law, provides
investigative authority to determine whether any person has violated
Title I, and imposes criminal penalties on any person who willfully
violates any provision of Part 1 of Title I.
EBSA has authority under ERISA Section 502(c)(2) to assess civil
penalties for reporting violations. A penalty of up to $1,000 per day
may be assessed against plan administrators who fail or refuse to
comply with annual reporting requirements. Section 502(i) gives the
agency authority to assess civil penalties against parties in interest
who engage in prohibited transactions with welfare and nonqualified
pension plans. The penalty can range from five percent to 100 percent
of the amount involved in a transaction.
A parallel provision of the Code directly imposes an excise tax
against disqualified persons, including employee benefit plan sponsors
and service providers, who engage in prohibited transactions with
tax?qualified pension and profit sharing plans.
Finally, Section 502(l) requires the Department to assess mandatory
civil penalties equal to 20 percent of any amount recovered with
respect to fiduciary breaches resulting from either a settlement
agreement with the Department or a court order as the result of a
lawsuit by the Department."
http://www.dol.gov/asp/programs/guide/erisa.htm
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