For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Benefits July 5, 2011
Union Sues School District over Missing 403(b) Plan Contributions
July 5, 2011 (PLANSPONSOR.com) - The union serving teachers and counselors in the Twin Rivers Unified School District in California has sued the district alleging the money members contributed to their retirement accounts is unaccounted for.
Reported by Rebecca Moore
The Sacramento Bee reports that in the suit, Twin Rivers United Educators complains that after the district was formed in 2008, some union members noticed their 403(b) retirement contributions weren’t being credited to their retirement accounts.
According to the news report, Twin Rivers United Educators President John Ennis said the lawsuit was filed so the three dozen members affected can also recover investment earnings from their contributions. “The district says they aren’t responsible,” Ennis said. “They say (the investment company) is responsible. This dispute is about who is liable for it.”
The Bee said School district spokesman Tom Janis indicated the problem stems from incorrect paperwork showing employees still worked for their former school districts. That caused confusion for the company administering the retirement plan.
“They would send the check back with no information,” Janis said. “That’s what caused this.”
He added that the district is completing an audit to make sure every employee retirement account receives the proper contributions.