Expert: Allen - 11/3/2008

Question
Thanks for your prompt response to my earlier question.  I just have one more question that I would like your advice on.

My previous employer had a defined benefit plan that I was a part of.  At the end of July they (previous employer) sent me paperwork informing me that they were terminating the plan and how would I like my benefits disbursed.  I elected to have the benefit sent directly to me with the 20% penalty taken out.  After waiting two months I contacted my previous employer to find out when the payments would be sent and was told that they finally received all participants paperwork and would be forwarding on to NRPA that week.  My question is this, how long does it normally take to receive your benefit?  According to my previous employer everything was sent in the last week of September.

Thank you in advance for you help with this question.

P.S. When I asked my previous employer this question they told me that they do not handle the disbursement of the funds and therefor can't answer my question.  Seems to me since they are the plan administrators than they could call and check on this information or at least give me the information so that I may do so myself.  (I returned all of my required paperwork on August 3, 2008 and am still waiting!)

Answer
There is no exact answer to the question about how long it should take. The plan termination is an unusual circumstance. However, the amount you receive should be adjusted based on the date the check is sent. So you probably should receive a little bit more because of the delay.

You are correct that your previous employer is the responsible party. It can delegate functions to another organization. But the responsibility rests with the plan administrrator.

If you feel you are not receiving what you are entitled to, you can contact the local office of the U.S. Dept. of Labor - Employee Benefits Security Administration.

Hopefully, you will receive your payment in the near future.