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Author: kvandav Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75595  
Subject: mandatory retirement deductions Date: 6/2/1998 9:18 AM
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<< Hiya,

I work for a state university and have a percentage of my gross salary removed for a general "teachers' retirement fund" managed by the state (to give you a taste of the quality with which the operation is conducted, the individual managing the fund for the state has done time out-of-state for securities fraud while still in charge of the portfolio).

This pre-tax deduction is required, however, the dividends of the investment cannot be accessed by employees until after ten (10) years of employment. Should termination of the position occur short of 10 years, the employee is reimbursed the cash value of the total deductions, without any adujstments for inflation and without any dividends.

My question is... "Is this legal?" and "Is there adequate grounds for a lawsuit/settlement on the part of a former employee who doesn't have access to the fruits of his/her wages?"

sign me
"irked Okey" >>
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 3549 of 75595
Subject: Re: mandatory retirement deductions Date: 6/2/1998 10:19 AM
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Greetings, "irked Okey", and welcome.

<<I work for a state university and have a percentage of my gross salary removed for a general "teachers' retirement fund" managed by the state (to give you a taste of the quality with which the operation is conducted, the individual managing the fund for the state has done time out-of-state for securities fraud while still in charge of the portfolio).

This pre-tax deduction is required, however, the dividends of the investment cannot be accessed by employees until after ten (10) years of employment. Should termination of the position occur short of 10 years, the employee is reimbursed the cash value of the total deductions, without any adujstments for inflation and without any dividends.

My question is... "Is this legal?" and "Is there adequate grounds for a lawsuit/settlement on the part of a former employee who doesn't have access to the fruits of his/her wages?">>

Yes it's legal. Whether or not there is a basis for a lawsuit is for a lawyer to decide. As long as the provisions of the plan are being adhered to by the administrator, the likelihood of winning such a suit is very remote.

Regards....Pixy

Regards...Pixy

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