Jump to content
chocklita

My NY charter school dropped my 403b without my knowledge

Recommended Posts

I found out today (as I was preparing to leave my job believing I had finally reached my 100% vesting) that my employer dropped my 403b plan 6 months into my employment without my knowledge, notification, nada. Is this legal? I work in a charter school in NY. 

Share this post


Link to post
Share on other sites

Hi chocklita,

Can you provide any more details? Who was the vendor? How long have you been at the school? Did your employer say that they tried to contact you and co-workers? Thank you. - Dan 

Share this post


Link to post
Share on other sites

To answer your question, yes, this is legal. Your employer can select and/or replace whatever vendor they want for a 403b. The same way they can swap out your insurance company every year. It is an employer sponsored plan; they’re in control. I suppose it is conceivable that a state or local government might voluntarily put restrictions on exactly how and if this is done, but that’s an area I can’t speak to.

Your post was very short on details...

100% vesting for what? Employer match to your 403b? Pension? What?

What was the vesting schedule?

What do you mean they “dropped” your 403b vendor? They stopped new participants from using it? They stopped existing participants from continuing to use it? They forced existing participants to roll the account over to another vendor? What?

Your post gives the impression that you worked at this job for a long time after the 403b was “dropped”. So what was happening to the contributions you were presumably making? Did they just stop? Did you not notice? Did they get diverted to another 403b? What?

Share this post


Link to post
Share on other sites

Sorry for the long response time. I can't do anything until I receive a transaction history from Principal (carrier of the 403B), which takes weeks. 

Let me provide more details, I apologize now for using any incorrect terminology as this is not my field and I am learning. 

After 5 years working for my charter school in NYC you become "fully vested" (Yes, Ed, employer contribution), so I decided to check my retirement account at Principal. (Full disclosure, hadn't checked it in 5 years. (And side note I am paying dearly for my ignorance and many things I did not fully pay attention to and won't do again, lesson learned). Anyway, I just trusted this money was there, etc. So I was shocked to find out that there is/was 0.00 dollars in this account. I'm like, what the hell?

So I call principal and they tell me that I was enrolled at 4% in Sept 2014 and my employer changed my contributions from 4% to 0% in Aug 2015. I was never notified, knew nothing about it and would guess that this is some clerical error from someone who had been doing their job a whole of 2 months. Bottom line, I'm thinking I have retirement contribution. And in traditional Charter school style turnover the people in HR now aren't the ones from 5 years ago. They are telling me that I never enrolled. Principal says otherwise and I've been waiting on this document for a minute. As of Sept 1 I will also no longer be an employee, so they aren't going to get an opportunity to make it right by allowing me on the 403B at this point. 

My questions: is this legal, is it worth pursuing? I know I'm out what I should have put in but I at the very least want to file a complaint  (with who?) and the most maybe recover the 4% my employer should have been contributing to this account. 

What should I do now?

Thanks for your help and advice!

Share this post


Link to post
Share on other sites

Chocklita

Did you receive monthly transaction notices? Did you and your employer  both contribute to this 403b ?. I'm sorry but I am still struggling to understand your situation. The employer can stop a plan it offers going forward and they should have notified you of any changes going forward in writing. But the money that was in the account can't just disappear. It should be yours.

You must have some paperwork/statements  somewhere that shows the progress of this account over the years. Any year end statements?  

Also how much money do you think was in this account and how much actually was  your earned money if any?

Please try and fully explain your situation .  For now on you need to save your documents and check them for accuracy every month in any new plan you may enroll in and file it. You can/should also check your accounts online.

Tony

Share this post


Link to post
Share on other sites

No, I never made contributions and there was never any money put into this account. So therefore, I never received a statement. To be honest, I didn't know you received statements so I was never looking for one. My issue is that they lowered my percentage to 0% without any type of notification to me, essentially dropping my plan. Is this legal? I want to file a complaint somehow so that this doesn't happen to other people at this school. OR is it not illegal and I should move on?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...