Legal Question in Employment Law in California

Termination & 401k distribution

I was terminated in May because I was on disability (which i was told by my employer to go on because he was having financial problems, after ten years I was disposable )and I requested my funds from my 401k. I was told that I could not close my account because my Employer had until Sept. 15 to decide wheter her was going to fund his portion or not. So I have again requested my money after he informed the company that manages it he will not be funding it this year. They said I would receive my money that was in my account on Dec 31,2005. They are still doing the audit so it will be a few weeks. I asked why I was not receiving any interest or earnings for 2006 since they had control of my funds and was told, they only audit yearly and even though it was still in the ''pool'' I won't be receiving any earnings on it. Can they do this? I could have invested it myself and earned interest.

Thank You,


Asked on 9/22/06, 11:46 am

1 Answer from Attorneys
Beth Mora Cooper & Mora, A Professional Corporation

Re: Termination & 401k distribution

You are asking a question which is governed by the Employee Retirement Securites Income Act or ERISA. With my brief understanding of ERISA, it does not appear to be appropriate. However, I am not an expert in ERISA. The Department of Labor (Fedearl Government) has an agency which deals specifically with this matter. You can contact them directly and they will assist you and even deal with this matter for you if there is a violation. You can find them at the DOL's website on line.

Best of Luck.

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Answered on 9/27/06, 11:18 am


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