Not depositing funds into 403(b)?

Question

I was employed with a company that messed up the 403(b) a non profit version of a 401(k). Basically they took out money and did not contribute to the fund. Once the mistake was found they company tried to correct by place the money into the account. Several years went past before mistake was found. I feel that while they did place the money into the account. I potential lost earning on the money since it wasn't in the account at the proper time funds were withdrawn. I am curious is the company still accountable and should action be taken against them. I am not the only employee that was messed over by this

Answer 1

You probably have a cause of action and are owed the interest.  However, it may not be worth suing over.  Your damages are the difference between what you would have earned if the deductions would have been applied when deducted and what you actually earned.  Given the stock market's fall over the last couple years, and the costs in hiring an attorney, suing could be a money losing proposition.

Have you and your co-workers gone to your employer to ask them to voluntarily make up the difference in what you would have made?  If your employer knows many of you are upset over this, your employer may give you some compensation just to avoid penalties/interest/attorney's fees.