Guest RMPension Posted October 25, 2006 Posted October 25, 2006 I have a client who has a small Defined Benefit plan. Recently, he discovered that an employee had embezzled funds. He wants to know how he can get the embezzled fund out of the pension plan. I have already told him that the pension assets cannot to “attached” but that he will need to payout the money and hope the employee pays he back. Does anyone else have a suggestion?
david rigby Posted October 25, 2006 Posted October 25, 2006 Try a Search, using various words, such as embezzle, embezzlement, etc. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Belgarath Posted October 26, 2006 Posted October 26, 2006 Were the funds embezzled from the PLAN, or from the EMPLOYER? If against the plan, then it's possible that there could be a judgement that provides for recovery from the participant's benefit. See IRC 401(a)(13)© and ERISA 206(d)(4). But I'd certainly rely on legal counsel - the requirements are quite specific.
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now