1 year after St. Pete company shutdown, employees can't access 4 - Local news, weather, sports Savannah | WSAV On Your Side

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>>

  • Dramatic doggie makeovers put new face to pet adoption

    Dramatic doggie makeovers put new face to pet adoption

    Tuesday, July 29 2014 5:14 PM EDT2014-07-29 21:14:31 GMT
    What a difference a bath can make! Millions of shelter dogs across the United States just need a little bit of grooming and TLC in order to shine, as evidenced by these photos.
    What a difference a bath can make! Millions of shelter dogs across the United States just need a little bit of grooming and TLC in order to shine, as evidenced by these photos.
  • Koala survives 54-mile ride clinging to car's grill

    Koala survives 54-mile ride clinging to car's grill

    Tuesday, July 29 2014 1:59 PM EDT2014-07-29 17:59:42 GMT
    Timberwolf clung to a car for 54 miles. Australia Zoo Facebook photoTimberwolf clung to a car for 54 miles. Australia Zoo Facebook photo
    An adorable little koala survived an amazing high-speed ride by clinging to a car for 54 miles on an Australia highway. The koala suffered a torn nail during the ordeal.
    An adorable little koala survived an amazing high-speed ride by clinging to a car for 54 miles on an Australia highway. The koala suffered a torn nail during the ordeal.
  • FWC: Lionfish need to be removed from Florida waters

    FWC: Lionfish need to be removed from Florida waters

    Tuesday, July 29 2014 10:48 AM EDT2014-07-29 14:48:07 GMT
    Florida Fish and Wildlife Conservation Commission is changing management rules of invasive lionfish to remove them from state waters. Lionfish was introduced to state waters in the 1980s, and since then, populations have boomed in recent years, negatively impacting native wildlife and habitat, the FWC says.
    Florida Fish and Wildlife Conservation Commission is changing management rules of invasive lionfish to remove them from state waters. Lionfish was introduced to state waters in the 1980s, and since then, populations have boomed in recent years, negatively impacting native wildlife and habitat, the FWC says.
  • 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

1430 East Victory Drive
Savannah, GA 31404

Telephone: 912.651.0300
Fax: 912.651.0320
Email: newsemailalert@wsav.com

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