Legal Question in Employment Law in Colorado

Unpaid pension benefits after company closure

I worked for a company that had a profit sharing plan in which the employees were not allowed to contribute. The company was sold about two years ago and all of the employee were laid off. Non of the employees have received a payout from the profit-sharing plan. This was a small company of 8 employees. I have spoken with the owner and he has mentioned that the funds are still in an account and he isn't planning to do anything with them until the economy gets better.

Is there a time limit for payouts and is there any legal avenues to consider to force a payout?


Asked on 5/07/02, 5:34 pm

1 Answer from Attorneys
Jason Savela The Savela Law Firm, PC

Re: Unpaid pension benefits after company closure

Is this a retirement account or simply an investment account? More information is needed. How long did you work there?

It sounds like the company's stock may be worth more when the economy picks up and that is why the owner does not want to sell. There may be a restiction on when and how it can be sold (in a block or in smaller amounts).

If your interest in the investment has vested and there are no restrictions, you should be able to get your share, but it might be wise to wait.

You should make sure that you have documentation of your ownership of some amount of this investment. If you do not, you may not be able to get anything. (that happened to my dad on a handshake deal).

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Answered on 5/09/02, 4:54 pm


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