Change in 401K plans

[Guest HRISGal]

Hi, I am hoping that someone here has the expertise to provide me with some assistance.

My former employer changed 401K plans in March of 2006. Through a piece of random correspondence, I am now finding this out as well as that my investment allocations were not mapped, and everything was put into a cash management fund with a very low return.

My question is- is the company obligated under ERISA (or anything else) to a- Map my account investments appropriately (my fund allocations that appear on my 12/31/05 statement from the old vendor appear exactly as choices with the new company) or b- should they have made their best effort to notify me of the change? I have not moved and I have received other correspondence from them during this time so I know that they had my address.

Thanks for the help!

[QDROphile]

You have no legal right with respect to how your account assets are invested. If you are not given effective ability to direct your investments, some plan fiduciary is responsible for how your account is invested and is subject to specified standards. A money market rate of return from March to November is not necessarily a breach of duty. You are not entitled to mapping, but if others were mapped and you were not, the plan or plan fiduciary may have some problems.

The plan has to follow its terms, so if it says you are supposed to direct investments and you are not given effective ability to do so, the plan has failed to follow it terms. Also the fiduciary may have breached its duty.

Assuming the plan was and remains designed to have participants direct investments, you were entitled to a notice about the transition if your ability to direct was suspended for a certain number of days. Penalties attach to violations, but I don't think participants get any cut.

Notices may have been issued and you did not get them for some reason that was not the fault of the plan.

[Guest HRISGal]

Thanks, I appreciate the quick response!