Written By Larry Beebe

Bond Beebe

P: 301.272.6025  E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

“Participants Would Complain If They Did Not Get Credit”

There are some participants who would complain if the amount reported is in error.  One of our pension fund clients once received a complaint from a participant who said 40 hours had not been reported on his behalf.  Almost 2000 hours had been properly reported on his behalf.  When we did a payroll audit, we found that the employer had failed to report one week of a year for all employees.  The deficiency was approximately $20,000.  Yes, the only participant complained but no one else did, and they had all received statements showing the hours contributed on their behalf.

A participant is likely to complain if the hours not reported result in his/her not being able to claim health benefits.  For pension or annuity hours not reported, there is less likelihood that a shortage would be missed.  For some plans, such as apprenticeship and training plans, there is not correlation between hours reported and benefits.  There is no one to complain about a “shortage” in those hours.

Participants should be sent annual statements showing payments on their behalf.  Complaints should be vigorously pursued.  The best way to pursue those complaints is usually to schedule a payroll audit.

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