What is the name of your state (only U.S. law)? CA
My friend worked at a small business (5-10 ee's) for over 25 yrs. The owner, his boss was a good friend since high school. In 1997, the owner told my friend that he would enroll him in a pension plan and that he (the owner) would contribute to it monthly. My friend did not receive any documentation about the plan - no summary, no information at anytime during his employment or afterward. What he did receive were annual reports once a year (1 page) from a Universal Life Insurance where he was named the insured and the owner's company as the policy holder.
My friend was told that this was a life insurance/pension plan and that he would have an account where his retirment would grow.
In 2004, the owner told my friend that the premiums were getting too high and he was not sure if he could continue to pay them - end of conversation.
My friend did not think much of it because the owner did not bring it up again and did not say anything about ending the contributions, cancellation, etc. In addition, my friend did not receive any notices to indicate any change. His boss continued to say things such as "you have your pension plan so you have security -- you'll be taken care of"
Last year, Sept 2011, the owner told my friend that he could not afford to keep him - he is costing him too much money. He told him he must lay him off and gave him his final check and told him to leave.
My friend was in shock and left forgetting to ask about information or paperwork on his pension plan and continued health insurance for himself & his family. He waited and waited and to this date he has not received any paperwork on his pension plan. He never received COBRA forms (his wife had to deal directly with the health insurance for a month to get the forms and miraculously were still eligible for COBRA even though almost 3 months had gone by).
Question:
What rights does my friend have in regards to access to the life insurance pay out since he was the insured and not policyowner?
What if there are no funds remaining or if the owner refuses to pay out whatever funds allowable to my friend?
Since the owner misrepresented the insurance plan as a pension plan and did not give my friend any documents defining the plan or notifications of any changes - are there any complaints my friend can file against his boss?
What are the proper steps that my friend can take to remedy this situation?
Thank you! Sorry for the long explanation.
NannersJWhat is the name of your state (only U.S. law)?
My friend worked at a small business (5-10 ee's) for over 25 yrs. The owner, his boss was a good friend since high school. In 1997, the owner told my friend that he would enroll him in a pension plan and that he (the owner) would contribute to it monthly. My friend did not receive any documentation about the plan - no summary, no information at anytime during his employment or afterward. What he did receive were annual reports once a year (1 page) from a Universal Life Insurance where he was named the insured and the owner's company as the policy holder.
My friend was told that this was a life insurance/pension plan and that he would have an account where his retirment would grow.
In 2004, the owner told my friend that the premiums were getting too high and he was not sure if he could continue to pay them - end of conversation.
My friend did not think much of it because the owner did not bring it up again and did not say anything about ending the contributions, cancellation, etc. In addition, my friend did not receive any notices to indicate any change. His boss continued to say things such as "you have your pension plan so you have security -- you'll be taken care of"
Last year, Sept 2011, the owner told my friend that he could not afford to keep him - he is costing him too much money. He told him he must lay him off and gave him his final check and told him to leave.
My friend was in shock and left forgetting to ask about information or paperwork on his pension plan and continued health insurance for himself & his family. He waited and waited and to this date he has not received any paperwork on his pension plan. He never received COBRA forms (his wife had to deal directly with the health insurance for a month to get the forms and miraculously were still eligible for COBRA even though almost 3 months had gone by).
Question:
What rights does my friend have in regards to access to the life insurance pay out since he was the insured and not policyowner?
What if there are no funds remaining or if the owner refuses to pay out whatever funds allowable to my friend?
Since the owner misrepresented the insurance plan as a pension plan and did not give my friend any documents defining the plan or notifications of any changes - are there any complaints my friend can file against his boss?
What are the proper steps that my friend can take to remedy this situation?
Thank you! Sorry for the long explanation.
NannersJWhat is the name of your state (only U.S. law)?
