Pension contributions in a non-profit

[homebody1585]

What is the name of your state?What is the name of your state? Texas

(A) My uncle works for a church in Texas that has a pension plan. Sometimes the church deducts his pension contribution from his paycheck but then they hold it for a couple of months due to "cash flow problems." They say that they "record" the contribution but just don't send in the money. We looked this up & saw that a private company can not do this because of ERISA, but what does the law say about a non-profit church [(501(c)3] doing this?

(B) We also read about a form called Form 5500 that a pension plan administrator would be required to file each year if the organization had not made employees' contributions on time. Is a church required to file a Form 5500? And is that form available for participants to read?

Thank you very much!

 

[Beth3]

(1) ERISA regulations apply to all employers. Being a non-profit or religious institution doesn't exempt the organization from complying with the law.

(2) I'm not a 5500 expert but they have nothing to do with whether employees' contributions were made on time. A 5500 report applies to employers who offer qualified benefit plans and who have 100 or more employees. The report must detail the benefits paid and various expenses to the plan, including any commissions paid to brokers or trustees.

If the church is not forwarding employee contributions to the Plan Administratore timely, then your uncle should contact the federal Department of Labor and file a complaint. 202-693-4650.