+ Reply to Thread
Results 1 to 1 of 1
  1. #1
    realware is offline Junior Member
    Join Date
    Apr 2005
    Posts
    1

    Unhappy 401K-Employer did not "true up" as promised

    I live in New Jersey.
    I have a 401K through my employer which matches bi-weekly contributions, up to the lesser of 6% or 8K.
    In 2003 I contributed and carefully paced my contributions to avoid hitting the 14K maximum before they hit their 6% or 8K maximum.

    However, in December, 2003, the HR Department sent an email stating the following:
    "[The company] will continue to match 100% on the first 6% of compensation contributed to the plan up to a maximum of $8,000. In 2004, employees will no longer need to spread their contributions over the entire year to get the full match. "True up" contributions will be processed at year end for all employees who are eligible but have not received the full match." I contributed 6.36% of my yearly pay, by contributing 15% per pay period beginning June1 - Dec 31. They contributed 6% of each of my paychecks during the June-Dec period, which amounted to 3.5% of my earnings for the year. I am being told that I would have received the full 6% of yearly earnings company matching contribution had I contributed 15% of my earnings during the FIRST 7 months of the year, but not when I contributed during the LAST 7 months of the year. They claim I was not a plan participant until I started contributing in 2004, despite the fact that I had been a participant the previous year and their SUMMARY PLAN DESCRIPTION states, " "Participant an Employee who has met the eligibility requirements, has entered the Plan, and has become eligible to make or receive a contribution to his or her Individual Account .... You will generally continue to participate in the Plan as long as you do not incur a break in service."

    The company claims that ERISA prevents them from providing me the full match under these circumstances. Are they correct? If not, what can I do about it? The Summary Plan Document which they provided to me was last edited 6 months BEFORE the December 2003 email and says nothing at all about true-up contributions.

    Thanks for any help you can provide.
    Last edited by realware; 04-22-2005 at 05:27 PM. Reason: Redundant What is the name of your state question

Similar Threads

  1. Deposit paid nearly 8 months ago, still waiting for item promised "in 4 to 6 weeks"
    By kevins in forum Consumer Contracts, Guarantees and Warranties
    Replies: 3
    Last Post: 01-20-2011, 03:03 PM
  2. Landlord " promised " to repair road.
    By USAviator in forum Landlord / Tenant Issues
    Replies: 0
    Last Post: 03-27-2007, 11:21 AM
  3. Employer verbally said "laid off" to me, now telling unemployment office I was "fired
    By JoseBritt in forum Hiring, Firing & Wrongful Termination
    Replies: 1
    Last Post: 09-03-2003, 03:15 PM
  4. Promised Parking for "Every" Resident A Lie!!
    By dscott in forum Landlord / Tenant Issues
    Replies: 1
    Last Post: 04-11-2002, 07:17 AM
  5. Dumptruck sign: "Stay Back 200ft. Not Responsible..." True?
    By rw9694 in forum Auto Accidents and Vehicle Claims
    Replies: 3
    Last Post: 02-11-2002, 10:20 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.