How Should I Proceed?

[eerelations]

Yes, I will concede that he didn't try to pay by writing checks on his own. I'm by no means convinced that he had any obligation to do so.

He was told by Payroll that he didn't have to do anything (which means, I think, "up to and including writing cheques"), that Payroll would fix it all for him.

I agree with cbg on this, the OP did what he was supposed to do to try to fix this.

 

[tranquility]

He was told by Payroll that he didn't have to do anything (which means, I think, "up to and including writing cheques"), that Payroll would fix it all for him.

I agree with cbg on this, the OP did what he was supposed to do to try to fix this.

I don't place blame on the OP for not doing more and for relying on payroll. (They are trying to make it up to him for that reliance.) I merely pointed out the reason why it makes a difference.

 

[davew128]

I used to be the person who approved the loans and balanced the transactions. I know whereof I speak.

As am I, and you're 100% correct.

 

[Redrooster]

I repeatedly contact HR about this and I was told don't worry about it...they would take care of it. Likewise, the promise to pay agreement specified repayment through payroll deduction. If I had known this was going to be the outcome, I would have glady made payments. the problem I have here, this is not an individually established plan it is an employer administered plan. I feel whole heartedly that they did not do their fiduciary duty.

And you couldn't make payments on your own? You share some of the responsibility here.

 

[Redrooster]

You are mistaken. I am in no way trying to avoid my responsibility. If I had known, I would have gladly made the payment. Either way, I ultimately would have been making them anyway. The problem here, I didn't know it was an issue because they started taking out payments and continued to do so well after the loan had gone into default. I find it hard to believe that benefits company would not have accepted payments a month late and/or not notified them that they weren't accepting payment because the loan had defaulted. I really don't believe they ever sent any payment late or otherwise.

I guess we will just agree to disagree on that then. I've done payroll or been the plan administrator for Mass Mutual, Vanguard, Merrill Lynch, and Fidelity plans. Employees can absolutely make payments on their own towards their if they choose to do so. I'm just not buying the "I take no responsibility for repaying my own loan" line.

 

[tranquility]

I repeatedly contact HR about this and I was told don't worry about it...they would take care of it. Likewise, the promise to pay agreement specified repayment through payroll deduction. If I had known this was going to be the outcome, I would have glady made payments. the problem I have here, this is not an individually established plan it is an employer administered plan. I feel whole heartedly that they did not do their fiduciary duty.

They didn't. That's why they are making you an offer. That does not change the law regarding a defaulted loan.

 

[Redrooster]

It has been recommended that I get an ERISA attorney. Would that be an option that would possibly prove successful?

You are mistaken. I am in no way trying to avoid my responsibility. If I had known, I would have gladly made the payment. Either way, I ultimately would have been making them anyway. The problem here, I didn't know it was an issue because they started taking out payments and continued to do so well after the loan had gone into default. I find it hard to believe that benefits company would not have accepted payments a month late and/or not notified them that they weren't accepting payment because the loan had defaulted. I really don't believe they ever sent any payment late or otherwise.

 

[tranquility]

It has been recommended that I get an ERISA attorney. Would that be an option that would possibly prove successful?

The only successful option is here:
http://benefitslink.com/articles/guests/2013_03_05_kennedy_epcrs.pdf

 

[Redrooster]

Thank you. I have my conference call with payroll tomorrow and that is one of the questions I have for them as to why they didn't pursue this option. From my reading, this would probably cost them more in the long run. Is that correct?

The only successful option is here:
http://benefitslink.com/articles/guests/2013_03_05_kennedy_epcrs.pdf

 

[tranquility]

Thank you. I have my conference call with payroll tomorrow and that is one of the questions I have for them as to why they didn't pursue this option. From my reading, this would probably cost them more in the long run. Is that correct?

I don't deal with such things directly so only hear stories. Those who go that route need to pay a ton to try and it is not a sure thing.