Legal Question in Employment Law in Alabama

pension money / vested employees

As a former employee at keystone foods, inc. in the gadsden, alabama area, the company after 5 years of service puts $25.00 a month in a vested fund for you, if you were to quit or get fired, how long do you have to wait BY LAW to get your vested money???

The company is telling us a year from the day you quit or get fired. They will not show us or give us a company policy stating this.

Trust me, I personally think they hold the money up for one full year for the interest.

Is there a LAW that states they have to give EACH employee when they quit or get fired a copy of this ''POLICY''

Please help with any legal advice you can give.

Thanks,

--name removed--Amberson


Asked on 4/18/05, 6:51 pm

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: pension money / vested employees

This could be a violation of a law called ERISA. Only a few lawyers delve into this rather arcane federal law, and luckily for you, I'm one of them. First off, you are entitled to a yearly copy of what is known as the "Summary Plan Description". They should give you this automatically but many companies don't. If you have not received one in the past few years, you should demand one (politely) in writing and fax it to them (otherwise they will deny ever getting it!).

Release of vested funds varies from plan to plan, but it should be spelled out in the Summary Plan Description. Some do not give you a pension until you turn age 65 - regardless of when you quit. Others allow for you to get a lump sum distribution right then. If it is a qualified 401K plan you have the option of getting it out immediately (within 60 days) and converting it to an IRA or another 401K. As best as I can determine, Keystone is not a publicly traded company but is privately owned by the Chairman, Mr. Lotman. In my experience such companies do indeed violate ERISA. It wouldn't surprise me that he runs it with an iron fist and couldn't care less about legal niceties. A lot of food businesses are run that way.

I'd be interested in talking to you more about them. Call me at 205-458-1100.

Sterling L. DeRamus

Attorney at Law

[email protected]

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Answered on 4/18/05, 7:59 pm


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