not sure where I stand

[Guest probronc1]

I left the company in 2005, shortly there after the company was sold. I was fully vested. Last year I recieved a statement from the program saying I owned 285 shares. I asked to liquidate my shares before they went down in value. I was told that they could not liquidate the shares for five years after my seperation date. I recently recieved a statement that not only shows that the stock price droped $3.00/share but that they took 12 shares and randomly invested it in a "premium commercial money market". But failed to notify me of the sale of stock that belonged to me. Furthermore they did not give an exchange number for the money market im now invested in.

questions. 1. Is it true they must hold the funds for five years before dispersal?

2. Can they randomly sell my stock and invest it in anything they what to?

3. Is there any recourse for this if they have violated any of the rules of the esop?

4. Are the obligated to tell me what money market my money is invested in?

5. Who regulates these programs?

[QDROphile]

There is nothing wrong on the face of what you describe (the term "randomly" is disregarded), but without knowing a lot more, no conclusions can be drawn. You are entitled to know what assets are owned by the plan, but why fuss over which money market fund? Both the Department of Labor and the IRS regulate ESOPs, with differences in focus and subject, but some overlap. If you are looking for help, the Department of Labor is probably your best bet, but your concerns appear to be misplaced, at least as far as technical matters go.

[K2retire]

Many of the answers you seek can probably be found in the Summary Plan Description. If you can't find your copy, the employer and give you another one.

[Peanut Butter Man]

I left the company in 2005, shortly there after the company was sold. I was fully vested. Last year I recieved a statement from the program saying I owned 285 shares. I asked to liquidate my shares before they went down in value. I was told that they could not liquidate the shares for five years after my seperation date. I recently recieved a statement that not only shows that the stock price droped $3.00/share but that they took 12 shares and randomly invested it in a "premium commercial money market". But failed to notify me of the sale of stock that belonged to me. Furthermore they did not give an exchange number for the money market im now invested in.

questions. 1. Is it true they must hold the funds for five years before dispersal?

2. Can they randomly sell my stock and invest it in anything they what to?

3. Is there any recourse for this if they have violated any of the rules of the esop?

4. Are the obligated to tell me what money market my money is invested in?

5. Who regulates these programs?

The information to answer your questions are in the Summary Plan Description (SPD) and the plan document. The Summary Plan Description is normally around 20-30 pages long. You probably would have received a copy of the SPD around the time you entered the plan. If you can't find your copy, call or send a letter to your former emloyer asking for a copy. I would also ask for a copy of the plan document. Your former employer can charge you a copying fee for sending you copies.

Once you have copies, you may find talking to an ERISA attorney helpful. They will be able to review the plan document and SPD, and use that information to answer your questions.

The Dept. of Labor also has a website - http://www.dol.gov/ebsa - with helpful information.