Author Topic: Holding 457 plan administrator accountable for delayed contributions?  (Read 332 times)

firestarter2018

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What are the options if someone's retirement plan administrator (in this case, a 457 plan for state employees) is consistently depositing employees' contributions into their account late?  My husband is a state employee and we max out his 457. He gets paid monthly on the 1st of the month. Initially the contributions would show up in his account within 9-10 days of that monthly paycheck, then it became 15-20 days, and most recently it has become 25-30 days. As I write (May 14), his contributions from his April 1 paycheck have still not been deposited. He sent a few e-mails but has not gotten any response yet.

Is there any way for employees to report the plan administrator for this?  Some basic googling indicates that plan administrators have a fiduciary responsibility to ensure timely deposits, but I don't know what constitutes timely and whether this particular plan has breached that standard. Six weeks seems a bit ridiculous, though.  That's six weeks that this large contribution has not been earning any returns in the market, which over the past six weeks may not have been trivial! Hoping that wiser minds on this board can point me in the right direction.

tomorrowsomewherenew

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Legally, the employer has until the 15th day of the following month.

firestarter2018

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Interesting. So if we check tomorrow and the contribution is not there, what is the next step? Contact the employer? Or the plan administrator?

tomorrowsomewherenew

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I would do a quick google search to pull up the exact legal wording and then send them an email with the information. I'd probably ask if they're aware of the regulation and if there's a reason they're not complying.