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Subject:  Re: Attitude Question - SS Date:  3/15/2016  4:06 PM
Author:  JAFO31 Number:  79358 of 97361


<<<Do you have any articles? When I looked, I found only a handful of articles, and mention of back wages, but nothing about raided 401-k accounts.>>>

"I think it was a follow-up to this article (I'm not a subscriber, so I can't see the whole article):"

Thank you.

"However, I did see this much:

Employees of the nine Twin Cities Pannekoeken Huis restaurants that closed late last year are having trouble getting information about their 401(k) retirement plans because of the parent company's bankruptcy liquidation.

U.S. Rep. Bruce Vento, D-Minn., is looking into the matter after a constituent complained that Massachusetts Mutual said it would not allow transfer of the individual's account until a full accounting of contributions is received from Sytjes Pannekoeken Huis Restaurants Inc.

Vento said Massachusetts Mutual received lump-sum 401(k) contributions from the company but does not know how the contributions should be allocated among employees. Vento said there also is a question whether all the money was contributed as required.

But Rob Kugler, the Pannekoeken attorney with Robins Kaplan Miller & Ciresi, said he feels confident that the company was current on its contributions to Massachusetts Mutual."

Which is what I first wrote, failure to deposit, as opposed to a raid/withdrawal of funds previously deposited in the 401-k.

JAFO previously: <<<The most I recall reading is failure to deposit, but I do not recall ever hearing about illegal withdrawals by plan sponsors. Pension funds, OTOH, were often raided by changing estimates and formulas and allowed the company to call it "overfunded" and then remove the excess amount.>>>

I am not suggesting that, if true, the employees did not take it in the shorts, or that it is (or was) right. This, however, is an issue that Congress can address with legislation mandating how timely deposits must be made by the employer - e.g., within x days after the end of the pay period or when checks/deposit receipts were issued by the employer, or at least monthly. And I have no idea what the code required in the 190s or requires now in this regard.

Regards, JAFO

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