1 year after St. Pete company shutdown, employees can't access 4 - WRBL

1 year after St. Pete company shutdown, employees can't access 401Ks

Posted: Updated:
  • 1 year after St. Pete company shutdown, employees can't access 401KsMore>>

  • Could it happen to you? Tips to protect your 401K

    Could it happen to you? Tips to protect your 401K

    Tuesday, March 25 2014 4:04 PM EDT2014-03-25 20:04:01 GMT
    While you can’t control the health of your company, there are some things you can do to protect your investments if you take part in a 401K plan.
    While you can’t control the health of your company, there are some things you can do to protect your investments if you take part in a 401K plan.
ST. PETERSBURG, FL (WFLA) -

Almost a year after federal agents raided the company offices in St. Petersburg, some Universal Health Care employees are still dealing with financial fallout.

About 200 participants in the company’s 401K plan can’t access their money because it’s been frozen by Universal’s bankruptcy trustee.

“I want that money back,” said Jane Pellerin, a former Universal employee frustrated over delays in getting to the funds she had in the plan.

Pellerin’s account, which totaled more than $100,000 at the end of the year, included not just money she contributed during her time at Universal, but throughout the rest of her career as well.

Especially because of the way the company shut down – with federal agents on site – Pellerin and her husband are nervous about getting access to that money.

“It’s not in our custody,” Tim Pellerin said.

A benefits attorney advising the bankruptcy trustee on the 401K plan told News Channel 8 the money is safe, and it takes some time to “wind down” a 401K plan and arrange to let everyone get distributions of their money at the same time.

“The money is exactly where it was before the bankruptcy,” said attorney Roberta Casper Watson.

In this case, Watson said part of the delay came from dealing with an accounting issue that involved figuring out who made before-tax and who made after-tax contributions to the plan.

In addition to waiting, participants in the plan also have another unknown – how much they’ll have to pay in fees to those who’ve handled the 401K plan over the past year. The need to distribute those fees is one reason why everyone has to be given distributions at the same time, so the fees can be divided amongst participants, Watson said.

Watson said plan participants could get access to their funds within the next few months.

For tips on how to protect YOUR 401K, click under "Additional Links".

Copyright 2014 WFLA. All rights reserved.



  • Don't Miss ItMore>>

  • Road rage karma: Florida man run over by own truck

    Road rage karma: Florida man run over by own truck

    Thursday, July 24 2014 10:50 AM EDT2014-07-24 14:50:09 GMT
     Caption: Joseph Carl, 48. Alachua Co. Jail booking photo Caption: Joseph Carl, 48. Alachua Co. Jail booking photo
    A man in Florida apparently got a dose of road rage karma when police say he was run over by his own pickup truck after getting out to bang on another driver's window.
    A man in Florida apparently got a dose of road rage karma when police say he was run over by his own pickup truck after getting out to bang on another driver's window.
  • Watch the full "Fifty Shades of Grey" trailer: What we couldn’t show on TV

    Watch the full "Fifty Shades of Grey" trailer: What we couldn’t show on TV

    Thursday, July 24 2014 10:43 AM EDT2014-07-24 14:43:17 GMT
    "Fifty Shades of Grey" fans, you've come to the right place. You saw part of the exclusive too-hot-for-morning-TV trailer on TODAY, but here's the full trailer for you to watch now.
    "Fifty Shades of Grey" fans, you've come to the right place. You saw part of the exclusive too-hot-for-morning-TV trailer on TODAY, but here's the full trailer for you to watch now.
  • VIDEO: Whale lifts kayakers

    VIDEO: Whale lifts kayakers

    Wednesday, July 23 2014 4:52 PM EDT2014-07-23 20:52:37 GMT
    YouTube imageYouTube image
    Dramatic video shows a 90,000 lb. whale giving kayakers a ride they'll remember forever. The video was shot by one of the kayakers and begins by showing the whale in the distance. 
    Dramatic video shows a 90,000 lb. whale giving kayakers a ride they'll remember forever. The video was shot by one of the kayakers and begins by showing the whale in the distance. 
  • Most Viewed Stories on WFLA.com

  • Sign up for WFLA News Channel 8 Email Alerts

    * denotes required fields






    Thank you for signing up! You will receive a confirmation email shortly.
Powered by WorldNow

1350 13th Avenue
Columbus, GA 31901

Telephone: 706.323.3333
Fax: 706.327.6655
Email: news@wrbl.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.