Processing delays with Nationwide

What is a reasonable to await processing of a rollover request (ACH) by an insurance company, in this case Nationwide?   Paperwork, all in order, submitted to Nationwide 3+ weeks ago and nothing but crickets.  My former employer says Nationwide is having issues from a January system conversion and rollovers are taking weeks.   

I've never been on this side of such an issue.  Is waiting weeks normal?  What if the market had tanked?

Yes, Nationwide went to a new platform in mid-Jan. this year. Yes, it's been a challenge. But no it shouldn't take weeks. Days maybe. The employee should check with NW for a status. Not much you can do about the market though. 

Yeah the rollout of their new platform has been less than stellar to be kind about it.

On 2/29/2024 at 3:30 PM, Lou S. said:

Yeah the rollout of their new platform has been less than stellar to be kind about it.

Yes, being very very very kind.

Now on week 5 (since valid authorization forms were sent to Nationwide).

Based on the experience that I (and apparently many, many others) have had, I think Nationwide's retirement plan services should be shut down, and I don't say that lightly.   

Would complaints to Ohio’s insurance regulator help get attention?

Or would a need to respond to complaints divert resources from fixing the weaknesses?

Thanks for the suggestion Peter.  I was going to call DOL and follow your suggestion tomorrow but got resolution late today.  

Senior management heads need to roll there; the people answering the phones were fine and the supervisors are stressed; gotta feel bad for them.  I bet there are at least hundreds of other people, maybe many more, in similar situations.     

@AndyH,

Sorry this thread may be old. Andy I got problem 457 rollover with Nationwide. It had been almost a month since they said send me a check on April 12, 2024. Until now I never receive it, what you do to resolve the issues? Thanks

On 3/11/2024 at 4:11 PM, AndyH said:

Thanks for the suggestion Peter.  I was going to call DOL and follow your suggestion tomorrow but got resolution late today.  

Senior management heads need to roll there; the people answering the phones were fine and the supervisors are stressed; gotta feel bad for them.  I bet there are at least hundreds of other people, maybe many more, in similar situations.     

 

@AndyH,

Sorry this thread may be old. Andy I got problem 457 rollover with Nationwide. It had been almost a month since they said send me a check on April 12, 2024. Until now I never receive it, what you do to resolve the issues? Thanks

It has been a month since I requested an annuity withdraw. Nationwide said they could not direct deposit to my credit union. I finally got a paper check to which the credit union said 5 business day hold. Now the credit union says 7 days from my check deposit. I am very suspicious.

In addition, it was 2 withdraws, taxes and fees were withheld but nothing is reflected on the receipt.  The check amount is correct. The receipt shows a Federal and State lines saying no withholding. Crooks, incompetent or what?

The money is withdrawn, then sets in Nationwide Treasure account for a month. If they do this a systematic policy... do they make interest?

Not to defend Nationwide or your credit union, but federal taxes withheld have to be deposited pretty rapidly. Roughly speaking, if an entity had more than $50,000 withheld in 2022, they are a semiweekly depositor in 2024. Pretty sure Nationwide would hit that standard. So they're depositing all withholdings with the IRS twice a week.

One imagines Nationwide’s 408b-2 disclosures to the employment-based plan’s responsible plan fiduciary described Nationwide’s float compensation.

Even when a service provider pays all claims, taxes, and other expenses daily, float can be meaningful money.

3 hours ago, Peter Gulia said:

One imagines Nationwide’s 408b-2 disclosures to the employment-based plan’s responsible plan fiduciary described Nationwide’s float compensation.

Even when a service provider pays all claims, taxes, and other expenses daily, float can be meaningful money.

Of course and I don't have any issue with it. Just pointing out that FTW aren't sitting around for a month before going to the Treasury Dept.

I did several 457 rollovers last year (old employers left job) and attempting another.  They are delaying the intake process and payment for the rollover to broker, but have zero issues taking on new clients.  Are they regulated by FINRA?   Or the State Division of Insurance.