DB plan stmts to participants

[doombuggy]

I work with DC plans, but am in a DB plan at my part time job. The company removes 7 cents for every hour I work each weekly pay period and puts it in the plan. In order to be vested, I must work at least 750 hours per year for 4 years that I am a participant. Any service prior to becoming a participant does not count.

I started in the plan in August 2004. I have only worked between about 600 - 650 hours per year, as I only work 2 days a week over there. Since I never work enough hours each year, I don't earn the vested service. You can become vested by reaching a monetary plateau, of which I am almost halfway there.

My main question is that I thought it was required that DB plans issued statements to participants at least every three years. I get the SAR, but have never gotten a statement in the 6 years I have been in the plan. Shouldn't I be getting something, even though I am not vested, as I am putting money in this plan ($244.34 as of 7/8/2010)?

My part-time employer is one of the largest employers here in central FL and we do have a company intranet, but I have never been able to find info on the plan specfic to me here.

Thanks for your thoughts.

[Effen]

A couple of thoughts:

The company removes 7 cents for every hour I work each weekly pay period and puts it in the plan.

Do you see this on your pay stub as a deduction, or did someone just tell you that the plan costs 7 cents per hour? If it is an actual employee contribution, it must be 100% vested. Even if you are not vested in the employer provided benefit, your employee contributions would be returned, plus interest. (I assume this is not a union shop?)

My main question is that I thought it was required that DB plans issued statements to participants at least every three years.

Yes, they are required to furnish all participants with a statement every three years. If they are taking money out of your pay, then you are a participant, even if you are not vested. My experience is that not all employers are "on board" with this requirement yet. I suggest that you formally request a copy of your statement.

[david rigby]

Expanding on Effen's comments:

Employee contributions to DB plans are very unusual in the US, except in limited circumstances (such as a plan sponsored by a governemental unit). Make sure you heed Effen's advice about requesting your statement, and don't overlook the SPD.

[AndyH]

Is this a union plan? If so, maybe the contributions are not employee contributions after all. Does the PPA statement requirement apply to all union plans? Could it be a delayed provision? Just random thoughts while reading the comments.

[doombuggy]

Yes, I do see the deduction on my weekly paystub from the mouse.

I was looking at the SPD again, and it covers hourly employees in both union & non-union roles. My position is covered by a union (but I am not in it).

I thought I had called the benefits area a few years back with some questions, and one of the answers I got was that if I left the company I would receive what I put into the plan - with interest I think.

I do see that the plan is covered by the PBGC.

Thanks for your thoughts. I will contact them again to find out why I am not getting the statements I thought I should be...

[AndyH]

The statement requirement only applies to vested participants. If you are entiled only to a refund, with our without interest, you must not be vested.