Expert: Allen - 11/24/2008

Question
QUESTION: I WAS RECENTLY LAID OFF MY JOB,I'M CASHING OUT MY PLAN WITH A 20% TAX WITHHOLDING MY QUESTION IS THIS I SPOKE WITH THE PENSION CONSULTANT OF ARE PLAN AND HE GAVE ME THE AMOUNT THE CHECK WOULD BE A WEEK AGO NOW MY BOSS STATES BECAUSE THE MARKET IS DOWN IT IS NOW A DIFFERENT LOWER AMOUNT THEN IT WAS IS THIS POSSIBLE ?? SINCE I CASHED IT OUT SHOULDN'T IT BE THE AMOUNT OF THAT DAY??? PLEASE HELP ANY INFORMATION WILL BE GREATLY APPRECIATED..

ANSWER: Unfortunately, I believe boss is correct.

It sounds like you're money is invested in what is known as a participant directed account. You choose the mutual funds. The amount you receive is the value of the funds on the day they are cashed in. You therefore share in the investment increases or decreases through that date. Unfortunately in your case the funds decreased in value.

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QUESTION: thank you for all your help but i have one more question now my employer states the pension will not be revised till Jan 31st, and i will not receive my  money till then, is the legal to hold my money from me in thought when i cashed out they had to release my funds in a certain amount of time can they legally make me wait this long ?? please help with any information possible, and again thank you .

Answer
There is no simple answer to your question. It all depends on the language in the plan documents. Some documents do allow for delay. The only way to get a definitive answer is to read the Summary Plan Description which should have been given to you when you first became a participant or to read the plan document which is available for examination at the company offices. Alternatively, you can ask your former employer to provide you with the pages from the plan document which support what he is saying.

If you believe you are not being treated properly you can:
1. Contact the local office of the U.S. Dept. of Labor - Employee Bnefits Security Administration. They may be able to help you. However, this will take time.
2. Hire an attornety who is knowledgeable about pension law. However, this can be expensive.