ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Monday, March 10, 1997 TAG: 9703120008
SECTION: MONEY PAGE: 6 EDITION: METRO
COLUMN: money matters
SOURCE: MAG POFF
Q: I work for a company that had a retirement plan for several years. Effective Jan. 1, 1996, this company went to a 401(k) plan. This was after our three-year collective bargaining contract had been signed.
In introducing the 401(k) plan to the employees, the company and the union agreed to let employees roll over the money in the old retirement plan into the 401(k) or an individual retirement account. The age that the company and union agreed upon for taking the money was 591/2.
For some reason or another, the company later told the union that employees had to be 65 before they could touch their retirement money. A grievance was filed by the union and has been in arbitration for more than a year. Is it legal for the company to change the retirement age?
The company also agreed to give employees quarterly statements showing how much money they have in their retirement accounts - another agreement the company broke. They have been as much as six months behind on their statements. Right now, the company owes the employees a statement for the fourth quarter of 1996 and a yearly statement for 1996.
In addition, the statements only show interest at the end of the year for the whole year's retirement contributions.
Is there a law requiring a company to provide quarterly statements? Is there a law for a company to show quarterly interest?
A: Alton L. Knighton Jr., an employee benefits specialist with the Roanoke law firm of Woods, Rogers and Hazlegrove, said he assumes there was no formal contractual agreement over terms of the plan since the changes came after the three-year collective bargaining agreement was signed.
Legally, Knighton said, there is no "magic rule" stating the age cannot be 65 for retirement. The age cannot be over 65, he said, but it can be 65.
But he said the company cannot unilaterally amend a plan once it has been put in formal writing and adopted. Once the company formally and in writing adopts the age of 591/2, the company cannot take away that right. That rule, however, does not cover mere promises. The plan itself had to have been published and adopted.
If the plan had been published and adopted, the union can fight a change.
Knighton said nothing in the law requires quarterly reports to employees, although most companies follow such a practice.
The government merely requires distribution of an annual summary for the performance of the plan as a whole, not individual benefits, Knighton said. The company must by law supply an employee with a summary of his or her own benefits at the request of the employee, Knighton said, but the company must do this only once a year for each worker.
Knighton said the company also is free under the regulations to post earnings (whether dividends or interest) only once a year.
Car insurance complaints|
Q: Can you give me the name and mailing address of the insurance commissioner for complaints if you have a problem with automobile insurance. I recently attempted to change auto insurance, only to go through what I considered to be a bait-and-switch process that left me without auto insurance. I'd like to report this to the commissioner with all the paperwork.
A: You can write a letter setting forth the facts to Al Gross, Commissioner of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, Va. 23218. You can enclose copies of any paperwork that you believe is relevant.
You can also make a complaint by telephone by calling the commission at 800-552-7945. Follow the instructions for reaching someone in the Bureau of Insurance.
LENGTH: Medium: 69 linesby CNB