Jump to content

SERIOUS mishandling of the VCP??


Recommended Posts

I would be interested in receiving some good advice on what to do with this eroding situation since early February of this year.  I did create an initial post on the issue and at the time, the fix was weeks away and results unknown as to how my boss would handle the entire situation.  And to true form he let me (and others) down terribly, in my opinion.  So I'm turning to the board for "expert" advice based on my telling of what I perceive to be fairly factual evidence of wrongdoings and misdeeds and he should certainly be held accountable in some way.  I have questions about the attorney's responsibilities in this as well.

I will try to be concise with what has unfolded.  We have 6 current employees affected by the lost IRA contributions as of 2/1/2020 that were "overlooked" for every current employee except one apparently.  An ERISA attorney was hired to move forward with the VCP and as of 3/25/2020, we all had our new IRA amounts deposited into our accounts, fixing the error.  My years affected were from 2013 - 2020 and others were very similar to that time frame.  However the one co-worker who has been with the company for 15 years was not given anything during the VCP for reasons we are not aware of.  The ER sat us down with a memo (attached) in hand and read from it verbatim, explaining the entire situation and what he planned to do about it.  This is the part of the memo that shines a light on the ER's intentions:  "However, if an eligible employee was given an opportunity to make an election to defer into the Plan (and chose not to do so), no corrective contribution will be due for that employee."

This individual was offered, what appeared at the time to be the SIMPLE IRA plan, by the plan representative in 2008 (the first year it was offered).  The EE turned it down due to another investment that he was provided by the ER a year or two earlier and thought this was one of the same and didn't want to contribute from his check at the time.

What has come to certainly be known as the company SIMPLE IRA plan was never again offered in any way, shape or form to this EE and also to our current employees.  This is why we all received our lost IRA for this lengthy time period, no questions asked, but this one EE was left out and he thinks it has something to do with the initial ask and decline in 2008.

Fast forward to the dust settling on the VCP and this EE drafts a 4 page letter explaining and pleading for some explanation as to why he was left out.  Silence for quite a while until ultimately the ER decides it best that he go ahead and deposit his IRA portion, 5 months after the closure of the VCP.

Just to be clear, the ER did speak briefly to the EE shortly after the closure of the VCP and everyone else had received their "fix email".  He was sorry that he couldn't do anything for the EE and he had the "document" with his signature (guessing the one from 2008 where he declined the deductions for that year).  The EE asked to see the document and any evidence proving he had been asked each year and declined each time, to which none have been provided to this date.

Now, if this isn't bad enough with the ER trying to conceal and basically steal the money from the employees over the 12 year period, he tried to do it again to the one CURRENT employee AND still has not contacted any of the FORMER employees.  I know of at least 4 former EE's that had worked for this company for 3-4 years each during this time frame (2008-2020).

How can this be?  How can both the ER and the ERISA attorney have an opportunity to fix this egregious error and make the final decision to look over the 1 EE (with no investigation or even a question as to his status) and also not contact 1 former EE about this error and appropriate steps to fix their situations?

Something is terribly wrong here or I am terribly misunderstood how a VCP is supposed to unfold or at the very least, the requirements that the ER and ERISA attorney need to meet to finalize the VCP.

Please offer advice/suggestions as to what would be the next step in holding this ER/ERISA attorney accountable?  I feel he purposely left everyone out the first time around (year after year) and when he had the opportunity to fix it (after getting caught), decided to screw some people over once again, including an EE who has been with the company since day 1 (2005).  Also as a side note, the ER has ample opportunity to reveal the company IRA plan at the time of hire for us past 4 employees but never, not once, did the EE mention the IRA to any of us during the hiring phase.


p.s. I'm attaching the actual MEMO, read verbatim by the ER at the company meeting on 2/25/20.  I brought the entire IRA situation to his attention on 2/1/20.

SIMPLE IRA memo.docx

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...