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Mandatory Company Retirement Program

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crosswinds

Junior Member
What is the name of your state (only U.S. law)? North Carolina

We're new to this forum and have a question. My wife's company has a mandatory retirement program of 7.65% matched which has suffered significant losses lately. We cannot control the investment strategies, only the company determines how the money is invested. Is the company liable for these losses? If so, are there any reilable firms in North Cariolina that we can contact for consultation. Thanks to anyone that can help us out.
 
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cbg

I'm a Northern Girl
Your employer is not responsible for the drop in the stock market either. They may control where it is invested but they do not control how well those investments do.
 

crosswinds

Junior Member
One last bit of information....this statement is from the benefits summary booklet "The company has elected not to be covered by social security and it is a replacement to such".

Would that make any difference?
 

cbg

I'm a Northern Girl
Are you saying that somehow that would mean the employer CAN control how the investments are doing?

You can certainly notify the Social Security Administration and/or the IRS that contributions are not being made. But that's a separate issue from your suing the employer because the investments didn't turn out as well as expected. That is not within their control. Whether they make the required contributions to social security is.
 
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crosswinds

Junior Member
I would think they definitely can control how the investments do. As an example, with our separate 401K plan that we control, we saw the need to remove ourselves from risky stocks back in March 2008, so we moved that money into an SEI stable fund and haven't lost a dime....actually have made about an average of 4%. Another bit of info...... she is 3 years away from early retirement at 55 which we were hoping to pursue.

So we question that if the company has chosen to stay in risky investments, then it is their burden to bear, not ours.....especially since this is a replacement account for social security. We will definitely be in touch with social secuity admin as to the legality of the company doing this.
 
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pattytx

Senior Member
What type of business/company is this that can "opt out" of Social Security? I'm not saying it's not totally impossible, but it's VERY unlikely.
 

cbg

I'm a Northern Girl
Fine then. Contact an attorney and tell them you want to sue your employer because the value of your investments went down, and you think they should be sued because their crystal ball didn't work as well as yours did.

Come back and tell us how long it took before he stops laughing.
 

crosswinds

Junior Member
Well this is certainly a useless site**************.bunch of smart-ass comments allowed like many other forums. I'll take the issue somewhere else....bye-bye ya'll.
 

pattytx

Senior Member
Useless because you didn't get the answer you wanted?????

We'll be more than happy to refund the money you paid. Oh, that's right, FREE!!!!!!!
 
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