Legal question about employer fraud on retirement

This forum is for general discussion that doesn't fit in the other topic-specific forums.
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Legal question about employer fraud on retirement

Postby mshunter77 » Thu Oct 30, 2014 10:16 pm

So basically my wife's hospital used to offer a type of pension plan. They did away with it in 2011 but my wife had been there long to be vested in it. The plan was you put in 3% of income on each check and you would get 75% of your income when you retire. In 2011 they dropped it to 50% of your income. Now it has come out that the hospital has not been putting their portion in since 2008 and now are looking at dropping the program all together even for those fully vested like my wife that has been paying into this for over 10 years. My question is are there any legal ramifications for this. To me this seems like fraud that the hospital has not been putting their portion into the account for 6 years now.
User avatar
jacksbuddy
Duck South Addict
Posts: 4872
Joined: Thu Dec 22, 2005 1:24 pm
Location: In the office and pretending to work

Re: Legal question about employer fraud on retirement

Postby jacksbuddy » Fri Oct 31, 2014 9:18 am

OUCH! There sounds like a whole lot of problem here, based on what you are saying. It also sounds like it can be very complicated to sort out. I know that nobody wants to have to sue an employer, but still, I suggest you get a good attorney to help you on this. With retirements lasting as long as they do, this is vital. Good luck and keep us posted.
Nobody owes you anything.
User avatar
skywalker
Duck South Addict
Posts: 1832
Joined: Sun Jul 31, 2005 1:38 pm

Re: Legal question about employer fraud on retirement

Postby skywalker » Fri Oct 31, 2014 9:26 am

Tag this thread as I would like to know as well........
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Re: Legal question about employer fraud on retirement

Postby mshunter77 » Fri Oct 31, 2014 11:25 am

Frustrating part is that my wife has passed on other jobs so that she could become fully vested in the retirement plan.
User avatar
stang67
Duck South Addict
Posts: 2981
Joined: Tue Nov 01, 2005 9:05 am
Location: LA

Re: Legal question about employer fraud on retirement

Postby stang67 » Fri Oct 31, 2014 11:59 am

I'm no attorney, but what you describe is highly highly illegal and generally gets the IRS handcuff wielders quite excited.
User avatar
GrizwalD
Duck South Addict
Posts: 1727
Joined: Sun Jul 06, 2008 7:26 pm
Location: Madison, MS

Re: Legal question about employer fraud on retirement

Postby GrizwalD » Fri Oct 31, 2014 12:25 pm

tagged as well .... this one will get interesting im afraid
COON HUNTER
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Re: Legal question about employer fraud on retirement

Postby mshunter77 » Fri Oct 31, 2014 1:45 pm

For those interested in this story it is Singing River Hospital System here in Jackson County. It has been in the local news. Their old CEO Chris Anderson up and left about a year ago(believe he is at Baptist in Jackson now) can't help but think he saw what was coming and probably made some of these decisions.
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Re: Legal question about employer fraud on retirement

Postby mshunter77 » Mon Nov 03, 2014 2:00 pm

Ok there is a lawyer meeting with people today to start a class action suit against the hospital system. The hospital claims they can not sue because there is no entity over this program because it was something the hospital did on its own. They are giving people the option to cash out what they have put in or roll it over into a 401k and they will match 50 cents on the dollar on what they roll over. I told my wife to go ahead and go today to start the process of cashing hers out before the lawsuit got started and the funds were tied up. So she did and they told her she could not do it until they figured things out and that would not be until next year sometime. Hopefully none of you work for Baptist Hospital as the former CEO that lead them down this road is now CEO there. Really frustrated and pissed off with this whole situation.
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Re: Legal question about employer fraud on retirement

Postby mshunter77 » Mon Nov 03, 2014 2:20 pm

Oh and they are still taking out 3% of their pay for the pension plan that is not available and they won't stop that until they figure things out.
Deltaquack
Duck South Addict
Posts: 2351
Joined: Sun Feb 10, 2008 8:27 pm
Location: Cleveland

Re: Legal question about employer fraud on retirement

Postby Deltaquack » Mon Nov 03, 2014 4:03 pm

Cash out hell..........attorney needs to be all over this. Not only will they have to match 3%, they'll owe lost interest and penalties and such. When they take out 3% of that check......they have 7 days to deposit it into the retirement account per the IRS. There is no questioning that. Believe me, I know all about it b/c my 401K plan I run for my employees is ran by a firm in texas. We cut paychecks and those checks every Thursday. There are times throughout the year that they go into the mail, get to place in texas, and then get deposited on day 8, 9, or 10 for instance and I get hit with penalties by the IRS when the 401K firm runs the analysis every year. It's not even my fault, but IRS doesn't care.
User avatar
jacksbuddy
Duck South Addict
Posts: 4872
Joined: Thu Dec 22, 2005 1:24 pm
Location: In the office and pretending to work

Re: Legal question about employer fraud on retirement

Postby jacksbuddy » Tue Nov 04, 2014 10:09 am

Soo, once you own this hospital, just how much are you going to try and sell it for?
Nobody owes you anything.
User avatar
mshunter77
Duck South Addict
Posts: 4106
Joined: Tue Dec 21, 2004 7:04 pm
Location: Ocean Springs via Natchez

Re: Legal question about employer fraud on retirement

Postby mshunter77 » Tue Nov 04, 2014 1:57 pm

Pennies on the dollar. As of now we have no plans on joining the lawsuit. My wife is worried that they may target people that are in the lawsuit as they have a history of laying off long time employees wih no reason. honestly I doubt there will be much money to give out after lawyer fees if they even get anything.
Barq's
Veteran
Posts: 443
Joined: Thu Mar 07, 2013 10:29 am

Re: Legal question about employer fraud on retirement

Postby Barq's » Tue Nov 04, 2014 7:24 pm

I'm no lawyer by any means, but I can tell you that without a shadow of a doubt, my Wife would be getting legal representation....not sure about the class action route, but if I were you, she would already be looking for a new employer.

I personally wouldn't work for anyone that treated me that way, especially when it comes to your retirement. No matter what the other guy did or didn't do, I would expect someone with some integrity to ease your mind and be open with a plan to make things right. I would say that they (singing river) would be putting themselves in further legal jeopardy if they touched anyone seeking legal advice.

I be damned if they would take another penny of my money until this was resolved....
Barq's
Taint
Veteran
Posts: 358
Joined: Mon Aug 14, 2006 2:18 pm
Location: Greenville

Re: Legal question about employer fraud on retirement

Postby Taint » Wed Nov 05, 2014 8:34 am

How cummas da rectums' bites off da turrrud but ain't got no toofies????
User avatar
jacksbuddy
Duck South Addict
Posts: 4872
Joined: Thu Dec 22, 2005 1:24 pm
Location: In the office and pretending to work

Re: Legal question about employer fraud on retirement

Postby jacksbuddy » Wed Nov 05, 2014 9:04 am

Nobody owes you anything.

Return to “General Discussion Forum”

Who is online

Users browsing this forum: No registered users and 57 guests