Expert: Shirley McAllister, CPP, PHR - 7/30/2009

Question
the Co. has withheld 7,900 from my payroll and only deposited 6,900 with the wellsfargo fund the fund manager.  Who or where do I file a complaint?
Glenn

Answer
I would find out from the company why there is a difference. I would suspect it is a fee for the administration of the funds. Every 401K has a fee for administration.

If that is not the answer than perhaps your company can either give you an answer or fix the mistake.

Here are the governing agencies for 401K plans:

The Department of Labor enforces Title I of ERISA, which, in part, establishes participants rights and fiduciaries' duties. However, certain plans are not covered by the protections of Title I. They are:

Federal, state, or local government employee plans, including plans of certain international organizations.
Certain church or church association plans.
Plans maintained solely to comply with state workers compensation, unemployment compensation or disability insurance laws.
Plans maintained outside the United States primarily for non-resident aliens.
Unfunded excess benefit plans -- plans maintained solely to provide benefits or contributions in excess of those allowable for tax-qualified plans.
The Labor Department's Employee Benefits Security Administration is the agency charged with enforcing the rules governing the conduct of plan managers, investment of plan money, reporting and disclosure of plan information, enforcement of the fiduciary provisions of the law, and workers benefit rights. But other agencies also are involved in pension law monitoring and enforcement.

The Treasury Department's Internal Revenue Service is responsible for ensuring compliance with the Internal Revenue Code, which establishes the rules for operating a "tax-qualified" pension plan, including pension plan funding and vesting requirements. A pension plan that is "tax-qualified" can offer special tax benefits both to the employer sponsoring the plan to the participants who receive pension benefits. The IRS maintains a taxpayer assistance line for employee plans at (202) 622-6074 (1:30-4:00 p.m. Eastern Time, Monday-Thursday).
The Pension Benefit Guaranty Corporation. The PBGC, a non-profit, federally created corporation, guarantees payment of certain pension benefits under defined benefit plans that are terminated with insufficient money to pay benefits. The PBGC may be contacted at 1200 K Street, N.W., Washington, D.C. 20005, telephone (202) 326-4000.

If you cannot work it out with your company you can contact the Department of Labor Erisa division or the US treasury at the number listed above.

You also need to remember that 401K plans are invested in the stock market so once it is invested there can be losses as well as gains so when the plan buys the stocks it is not always the same amount of money that you put in if there is a downturn you will lose money and in an upturn you will gain.

Shirley