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Subject:  Re: Deferred Comp Date:  8/25/1999  2:10 PM
Author:  pwyles Number:  13445 of 103776

<<One problem that was ignored was the ownership of the funds within the plan. The company not you owns the funds in 457b plan. The company can not use these funds for day to day usage, but these funds are considered an asset of the company for bankruptcy. These funds can be & probably would be used to pay creditors in a bankruptcy case. >>

A local trucking company just went bankrupt. The first thing the union did was file a claim to make it known one of the "creditors" in the bankruptcy case is the employees wages that hadn't been paid yet. I don't know if this company had a 457 plan, but if it did it would be a court decision how much of the retirement money you were counting on you would really get.


I'm glad to see this end up on hot topics list. I wanted to respond to the original post, but didn't feel qualified to give the full answer it deserved.
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