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  1. #1
    derby98 is offline Junior Member
    Join Date
    Oct 2008
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    2

    Employer stealing? Not funding 401K

    What is the name of your state (only U.S. law)? CA

    I work for a small business 10 employees. The owner is the office manager & HR. Back in Feb 08 we were offered a 401K so I filled out the application & elected to have $100 per month deducted from my pay for the 401K.
    As time has gone along I realized that the $100 was being deducted bit I did not get a statement from the Administrator/Bank. I mentioned this to my employer & she said "Oh they send statements once per year".
    This seem odd to me so I called the administrator & gave them my info social etc.. & they said "Sorry, you do not have an account". I told them I started paying in to the plan in Feb 08.
    The rep was most helpful in fact she spoke with someone in here sales dept & they said that they had sent my employer a sign up packet in Jan 08 but never got any applications back.

    I spoke with 6 of my co workers who are in the 401K plan too & they all said the have not got any account info either.
    I should mention too on a related matter we pay $180 per month for health insurance through my employer but one many occasions when we have gone to the doctor they have declined our insurance. When I called my health insurance company they advised that the account is frozen. One nice insurance company telephone rep let on that the reason the account was frozen was for non payment of the premium.

    I know if I cause waves my boss will fire me & I can't afford that right now. What laws is my boss breaking regarding the 401K money she is keeping?
    Is there any State agency I can complain to regarding the health insurance?
  2. #2
    cbg
    cbg is offline Senior Member
    Join Date
    Nov 2001
    Location
    Massachusetts
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    34,263
    First thing on Monday, run, do not walk, to the telephone and contact the US DOL. I don't have the phone number immediately to hand but if Beth wanders by she has it. If your employer is making withdrawals for a 401k and not submitting it, that is the sort of action employers go to jail for.

    More info is needed on the health insurance. Primarily, how long has the premium been unpaid?
  3. #3
    derby98 is offline Junior Member
    Join Date
    Oct 2008
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    2
    Quote Originally Posted by cbg View Post
    First thing on Monday, run, do not walk, to the telephone and contact the US DOL. I don't have the phone number immediately to hand but if Beth wanders by she has it. If your employer is making withdrawals for a 401k and not submitting it, that is the sort of action employers go to jail for.

    More info is needed on the health insurance. Primarily, how long has the premium been unpaid?
    Thanks

    The health insurance premium is 2 months behind according to Insurance company.
  4. #4
    cbg
    cbg is offline Senior Member
    Join Date
    Nov 2001
    Location
    Massachusetts
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    34,263
    It's a hair early to take action on the health insurance, but only a hair. It's still within the realm of possibility that payment will be made and the insurance reinstated retroactively. Believe me, I've been through this a number of times on both sides of the desk; I know the timing pretty well.

    But if it hasn't been reinstated within a couple of weeks, you can contact the state insurance commission.

    Note: health insurance is not required by law in your state, so it could go one of two ways. The commission would require that EITHER your employer pay the premium so that the policy is reinstated OR that the employer return any premiums that have been deducted on your behalf.
  5. #5
    sevin is offline Junior Member
    Join Date
    Aug 2009
    Posts
    3

    Employer not paying the insurance premium promised

    I joined my employer last year March (2008). As per the offer letter and benefit summary the employer promised to pay the 100% insurance premium. I fell sick a month ago and when I check with my employer about the insurance details, they kept dodging and never replied back. I check with the insurance company where my employer has the group insurance policy, I gave them my social and other info. The insurance company says that my insurance was never activated. So my employer never paid the insurance premium they promised.

    More over they force me to take a unpaid vacation whenever the project gets over till the next project.

    What should I do?
  6. #6
    pattytx is offline Senior Member
    Join Date
    Oct 2004
    Location
    small town, PA
    Posts
    9,442
    What you should do is start your own thread instead of hijacking one over a year old.
    ---------------------------------------------------------------------------------------------------------------------------------------------------------
    You have not won the law suit lottery; in fact, you haven't even won the law suit scratch-off.

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