Profit Sharing Puzzle

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Hopeful

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The business I work for has had a profit sharing plan since 1998. This past February they sprung on us they were switching companies that administer it. We were made that day to complete paperwork and select our own funds to invest the money we had with the old compnay in once it was switched over to the new company. We were told this would take place on March 01, 2009.

The new company is online and we can each access our own part of the money and see what our gains etc are. We are also allowed to contribute to our current balance directly from our paychecks. Note: My employer has not contributed one penny since 2001 to this profit sharing plan.

Question one> How can it be a profit sharing if the company doesn't ever contribute to it? Yet they are spending thousands of dollars on decorating their offices and getting bonus's. (this is a county nursing home).

Question two> Several of the employees have been checking their online account since March to see about their money and it shows a zero balance unless you are having money taken from your paycheck then ONLY that money is there. Our balances from the old company are not there. In April we asked the employer what was going on. We were told at first the old company was the hold up, then that my employer had sent some of the paperwork to the new company that was to have gone to the new company, blah, blah, blah. When questioned as to why after over a month after it was to have been switched no one was overseeing this and pushing it to be taken care of correctly, the answer was "we can't help the mechanic's of it."

I managed to get some info from the new company who said the funds had not been liquidated and sent to them from the old company, but that this was to take place the first of June. I might note that on each employees home page of the new company it states that their plan entry date is March 04, 2009. Now here it is June 8th and still we have zero balances, the money has not been switched yet. Several staff are concerned that if the money had been in place as we were told they could have bought funds at a lower price and they have now gained as well as WHY hasn't someone of authority in our company fixed the problem after we brought it to their attention two months ago and where is our money! They have never said another word. Who should we report our concerns to. Attorney General? Fed. Dept of Labor, State Labor?

Thanks so much.
 
Possible ERISA violation (Federal) contact an attorney that deals with ERISA. ERISA present very unique legal issues. The standard of review depends on the kind of claim that is made. Recently, there have been a number of class action cases against employers who either bankrupt or diminish or alter benefit plans. The Ninth Circuit has provided some clarification on standard of review, but it is limited to a particular kind of benefit claim.
 
I also face a similar circumstance, my previous employer promised profit sharing. This was part of the terms and condition given at the time of the offer. But after the first year he refused to share any profits giving global recession a the reason. I am seeking legal advice currently.
 
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