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|Subject: Employer Did Not Invest Contributions||Date: 2/23/2000 5:47 PM|
|Author: UALPilot||Number: 2477 of 20141|
My daughter works for a company that has used a professional money manager for the last two years to handle the investment of the company's pension and profit sharing funds. Prior to that the four trustees made the investment decisions. The four trustees also happen to be the owners and are all CPA's and therefore should have good financial decision making skills (you would think). It is the employees understanding that against the advice of the professional investment manager the trustees left the funds in a savings account. Her last statement showed that she earned 3.75% on the monies for 1998. She has not received the 1999 statement, but normally would not get that until the following October. The employees think that the monies are still in a savings account. Two requests to one of the trustees for an explanation have gone unanswered.
At my urging she contacted DOL Pension Welfare Benefits and they where no help (what else is new) and Money magazine said they get to many requests to respond to her inquirery. Then it dawned on me why not ask the Fool.
Any suggestions on where she can get information on the trustees liability in this situation. She has read the ERISA regulations and she thinks the trustees did not perform their fiduciary responsibilities.
Before she gets involved in a legal spiral of ever more involving issues does anyone know of a website that she could get information on.
1. What legal recourse do the employees have against the trustees for not investing these funds in a fiduciary responsible manner?
2. Is there a federal or state agency that would sue/fine the trustees for this negligence? (I.e. let the agency sue the trustees without having an attorney get involved in a class action lawsuit.)
3. Can the trustees be required to put monies into the pension and profit sharing plan out of their own personal funds to make up for the lost investment gains that would have occurred during the last two years?
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