QVC Loan Probe Continues

August 7, 2009 ( -QVC says it continues to investigate alleged irregularities regarding employee 401k hardship withdrawals at its Rocky Mount, North Carolina distribution center.

QVC told WITN Thursday, “As the plan administrator of its 401k plan, QVC is required by the terms of the plan and federal regulations to conduct this investigation to ensure the appropriate operation of the plan and to protect all participants in the plan. We are working with Fidelity Investments, the third-party provider retained by QVC to help administer the 401k plan, to complete this process and anticipate having a resolution in the near future.”

According to the report, QVC says every employee involved in the investigation will have an opportunity to meet with them to discuss the allegations, and all employees who return to work after the investigation will be made whole for any loss of scheduled hours.

According to reports earlier in the week, employees received letters instructing them to schedule a meeting with a company loss prevention specialist and HR representative to prove their loans, already paid by Fidelity Investments, were legitimate. “Failure to set up a meeting will indicate your decision to voluntarily resign from the company,” the letter stated (see QVC Probes 401(k) Loan Problems ).

Workers indicated they had been forced to tap into their retirement plans because the company has imposed a salary freeze, cut back on overtime and hours, and started paying employees bi-weekly, instead of weekly.