Must You Contribute To A Retirement Fund
My sister-in-law works at the YWCA and they are demanding that she
join their "retirement fund". They gave the employees paperwork stating
that this is not an option, but a requirement. Is that legal?
At first they hounded her to donate part of her salary ($9.00 per hour)
to the United Way, not they tell her she must donate 3% of her salary
to the retirement benefit fund.
She works all night long cleaning for them working for hardly enough salary
to pay for her gas to get to work, now they want her to fork over 3% for
a fund. She barely can make ends meet, now they want to force her to
give what she doesn't have.
What recourse does she have?
She lives in NJ
Re: Must You Contribute To A Retirement Fund
According to my expert, she needs to confirm if it is a 401k or a 403b. If it is a 401k, they definitely cannot require it. They can have an auto-enroll, where she is enrolled unless she takes specific steps to prevent it, but they cannot make it mandatory.
If it is a 403b, my expert says she does not believe they can make it mandatory, but she is not positive, because while they are mostly the same regs, there are a few differences and she has never run a 403b.
The US DOL is the regulatory agency for both. That's who she should contact both to confirm whether a 403b can make participation mandatory, and to file her complaint if they say it cannot (or if it turns out to be a 401k, where mandatory is definitely not allowed).
Re: Must You Contribute To A Retirement Fund
I just thought that perhaps this may make a difference. My sister-in-law
is in her 60s. Would this change what happens with this 403b plan?