No. of Recommendations: 0
Greetings, Csckl, and welcome.

<<This is rather long but I have a situatin to deal with that I don't know what to do about, or how really bad it is. Am hoping one of you readers can offer some guidance:

In 1994, my husband went to work for an S-Corporation with 3 shareholders and about 15 employees. He, as an employee, became eligible for their Pension and Profit Plans in 1996 and had monies allocated beginning in '96 for those plans. The 'Plans' are administered by the office administrator, and are (unfortunately) not funded until after the calendar/financial year. Pension funds are invested in a variety of mutual and bond funds.

In February of 1997 the administrator held the annual employee meeting to discuss the investment of the newly-distributed '96 pension funds. My husband asked me to attend with him, and at that meeting I suggested that the portfolio was awfully conservative. (Total 1996 return was 11% and they were happy with it!!) My opinion was listened to and then ignored. My husband and I felt that further comment would not help, and to sit on it: We had no other choice, as the group voted to continue as is with the portfolio.

My husband became a shareholder in 1997 and was then told he could roll the funds into whatever he wished......which we have done. We also just found out that we could have rolled the funds from the beginning, as the fund plan allows the employees to self-direct (but no one tells them this).

The principal (from 96 and 97) was received several weeks ago and we have invested, Foolishly. This week we received the 'interest' from the 96 pension investment: TOTAL OF 2% return on 1996 funds,
being the total return for those funds for the entire investment year of 1997.!!

***The plan administrator told my husband that she left his portion of the pensions funds (while he was still an employee) in a 2% savings account, because he had indicated that he didn't like the investment portfolio all of the other employees were in. She also stated that she told him this last year----which he swears to me is not true.

The bottom line is probably about %3,500 in interest that my husband's pension has not received, assuming that if the monies had been left in the employee's plan, they had a 15% return during 1997. While not a huge sum of money today, the tax-deferred growth over 20 years of that amount is a large figure.

Can anyone help with advice on where to go from here and what possibilities there are that can solve this?>>

You probably have no cause of action provided your husband was provided a summary plan description of the retirement plan and made aware of the options available to him through that plan. Assuming employee meetings were held on that benefit (and you indicate they were), he was informed about those options. He and he alone was responsible for the options chosen, not the plan administrator.

Chalk this one up as a lesson learned: Know and understand your employer's pension plan. You have my persmission to kick dear hubby in the rear and tell him from me to pay attention next time. His future well-being in retirement depends upon it.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.