If I owe money to my retirement plan and the fiscal year is closed, do I have any options?

UPDATED: Feb 24, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Feb 24, 2011Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I owe money to my retirement plan and the fiscal year is closed, do I have any options?

I am an AZ state employee and was working part time for 9 months before I became full-time, at which time I began contributing to the mandatory retirement plan. I was told by my employer that I owe money to my retirement plan from my part-time service. Sure enough I looked it up and at 20 weeks of qualified part time status you have to contribute to retirement. They never informed me of this and they never deducted anything from my paycheck. That was over a year ago and the fiscal year has long since closed. They are giving me 90 days to pay the balance. Do I have any other options?

Asked on February 24, 2011 under Business Law, Arizona


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

By notice, do you mean that you were not informed of your contribution requirements possibility or that you have to be required to contribute at all? If you knew you had to contribute if you worked over a certain amount of weeks, then unfortunately, you may be held partially responsible for the issues of reimbursing your account.  That being said, if your employer waited over a year to ask you to contribute, you need to speak with your union or state dept of labor to see if there is a statute of limitations issue. If there is none or it is greater than one year, please ask your employer to give you a pay plan to reimburse the account.  You cannot pay back what you don't have and they cannot withhold monies from you on future paychecks when it is was partially the employer's fault.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption