Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: UALPilot Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19021  
Subject: Employer Did Not Invest Contributions Date: 2/23/2000 5:47 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement