Employee using another's SS

[cpc0506]

An employee just confessed to our client that he has been using someone else’s last name and SSN. The client has contacted an attorney (not an ERISA attorney), who advised that the participant’s 401(k) account balance should be forfeited since he was employed under false means. We don’t feel that this is necessarily the correct resolution. The participant has a $26,000+ vested account balance and an outstanding loan (if that makes any difference).

We’ve looked through all of the previous posts on this, most of which have to do with illegal aliens, and all of which are over 8 years old. There seems to be one camp that says the participant doesn’t get anything in the plan because of the fraudulent behavior in becoming employed. Others say that this has no real impact on the retirement plan because the individual worked for the compensation regardless of the SSN that it was under. Any new insight on this?

[masteff]

http://benefitslink.com/boards/index.php?showtopic=49517

Fortunately, ERISA preempts stupid attorneys.

[ETA Consulting LLC]

Technically, the "PLAN" is a separate legal entity from "The Employer"; even though the Employer sponsors the plan. Hence, nothing from a Plan perspective would change. I think this is consistent with the underlying foundation of qualified plans.

Good Luck!

[MoJo]

http://benefitslink.com/boards/index.php?showtopic=49517

Fortunately, ERISA preempts stupid attorneys.

"LIKE" many times over. I *will* use this (and probably often!)

[mbozek]

If he has a SS number retitle account under his identity and SS #.

[ESOP Guy]

I will join the others in this-- you can't take the benefit from the person. They have earned a benefit under the plan and it is next to impossible to take it from them. You simply have to find out their correct SSN and id and change the account to reflect that information.