Maximum time permitted from payroll deduction

[Guest BL]

I work for a not-for-profit health care organization in NYS that offers a 403(B) plan.

We are paid every two (2) weeks and I have been told that the pre-tax deductions are deposited once a month (before the 15th) to the 403B.

The employer, in effect, is profiting from my money during that timeframe.

I am told I cannot participate in the 403(B) any other way.

Is this legal? If so, is anything being done to limit the time between deduction and deposit to employees' accounts? If not, can anything be done? How?

[This message has been edited by Dave Baker (edited 12-20-1999).]

[Guest kclark]

This is a problem a lot of people have! Under ERISA Sect. 2510.3-102 the employer has to make deposits as soon as they can be segregated from employer assets, generally within 15 business days after the end of the month in which the deferrals were made.

For example: Deferral of $50 made on 11/10, employer has until 12/21 to make the deposit.

I guess you would have to calculate the number of days from each pay period until the 15th of the month to determine if they are within the limit.

Hope that helps!