Expert: Allen - 8/27/2010

Question
Hi,

I left my previous job exactly one year ago. Upon leaving, I spoke to my employer regarding my profit sharing disbursement and she told me it would take approximately one year for it to be distributed to me. I'm expecting the payout this month and they contact me to tell me it will be a couple more months. I spoke to an employee who left the company right before I did, and he told me he received his disbursement in six months. So my question is: Is there a time frame or limit the employer is entitled to, before disbursing the money to me? I feel like they keep holding it off, can this legally continue?

Sincerely,
Running out of patience

Answer
The plan document will state when distributions must be made. Many documents are written to provide a lengthy period before payments are made. Quite often the timing will depend on what time during the year an employee left and when accounts are valued. Therefore, it's possible for one former employee to receive payment a few months after he/she left and for another employee to have to wait 18 months.

The company may be doing things properly. Without seeing the plan document, I can't give you a good answer.

If you don't receive your money within the next six months, contact the local office of the U.S. Dept. of Labor - Employee Benefits Security Administration. They may be able to help you.