No earnings or contributions included in final distribution amounts.

[Guest Mabel]

My former employers pension plan year ends on June 30th. Before giving my notice of resignation last May, I inquired about eligibility requirements for the plan year to make sure I qualified. Employer has never given any employee the Summary Plan Description. Seems I met all those requirements according to the company that handles the pension plan annual reports. Upon receiving the distribution papers in June to sign, I immediately noticed the final figure to be that of June, 1999. This company did not tell me one had to be actively employed on the last day of the plan year. My question is: Am I not entitled to at least earnings on the balance from July, 1, 1999 to the date of employment termination or date of distribution? Is this company liable for not informing me at the time that one important fact of active employment on last day? Is my former employer liable for never giving any employee anything in writing about the plan? I just need advice, since after nearly 3 months I still have not received any reponse or the distribution.

Thanks.

[Guest]

well, the plan is required to provide an SPD, but ERISA imposes no penalties. however, if the DOL gets involved then the plan could face some penalties or audit, etc. Company detest having stuff audited!

( I would add, however, even if the spd said you had to be there on the last day, you would probably lose any entitlement to the contribution since it could be argued that you quit a month before the plan year end, and it was obvious you had no intention on staying around.)

and you could request a copy of the document and see what the document says in regard to eligibility for the contribution, but they are allowed to charge you for making copies - so that is probably not the best way to go.

all that being said, the normal practice in regards to distributions is to pay someone the balance as of the most recent valuation date. (Most documents would contain that language or something similar)in other words, if a check is cut for you AFTER 6/30 then you would receive any gains (or losses - it can happen).

you indicated it has been 3 months since you requested a distribution, that is probably a good sign that the valuation has not been completed and so the company is waiting for the final numbers. that is not unusual unless participants have their own accounts, in which case you would expect to be paid out fairly rapidly.

so, hang in there. if your final payout = your July 99 balance you should probably contact the DOL and explain your situation.