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    nalaxu's Avatar
    nalaxu Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jul 24, 2007, 10:44 AM
    Renigging on 401k match
    My employer sent out a memo last year stating that she was going to match our 401k's for 2006. After the memo, she supposedly made mention in a meeting that she changed her mind due to decreasing profits. No one heard this statement and there were no memo's with this information. The plan that holds our 401k's said that the money was discretionary, but I believe that is true until she sent the memo saying she was going to match funds. Do we have any legal recourse in this matter?
    Thanks for any and all help,
    Nalaxu
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jul 24, 2007, 10:52 AM
    Probably not. Unless the plan documents call for a match, then a match is discretionary on the part of the employer. Even if they promise a match then renege, they can cite a business down turn. So up until the time the match is due they can legally change their mind.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Jul 24, 2007, 10:53 AM
    I suspect if you check the plan documentation (which you should be able to get from the administrator) you will find that the match is totally discretionary. This means the employer matches as she fit (or not), and even if she previously indicated her intention to match, I doubt that eliminates her right to change her mind. Of course, this episode speaks volumes about her management style, which is poor indeed.
    nalaxu's Avatar
    nalaxu Posts: 2, Reputation: 1
    New Member
    		  
    #4

    Jul 24, 2007, 11:11 AM
    Thank you Scott and Ebaines. That is what I feared, but was hoping otherwise.
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