Rollover and termination of the 401k program through Empower happened on August 14th , and I got my rollover statement showing a HUGE 10% "market value adjustment" according to Empower. This HAS to be illegal. Was told by Empower that on 08/11/23 the plan ended and anyone in the Stable value 3% guaranteed fund were charged a 10% termination fee. THIS IS BS, and should never have been allowed. Someone should have warned us of this ridiculous action. I would check your loss if you had any funds in this supposed safe option ( guaranteed, no less!). Holy moly, I am PI---D!!! Thanks for taking a "see ya later" fee from this little guy. Should be a class action lawsuit.
16 replies (most recent on top)
The lawsuit was filed in a federal court in Newark, NJ, on Thursday, September 14.
Sent both Booker and Warren emails on this weeks ago. Neither even bothered to send any kind of reply at all. They fight for the little guys though, remember?
I did not have a 401K with BBB but here is some information I hope may be helpful. Back in July, Senators Cory Booker (NJ) and Elizabeth Warren (MA) sent a letter to BBB re: severance issues and the stock buyback program. There seemed to be interest on their part on actions taken by BBB on these matters. If I lost funds like many of you have, I would not give up until I got a satisfactory answer. Maybe there is nothing that can be done but I would reach out to Booker’s and Warren’s offices to see if they can get some better information for you. If nothing else maybe something can be changed so this does not happen again.
When I was laid off in February the first call I made was to empower to discuss my options. I was told there was no rush I told them specifically that BBB was filing for bankruptcy and asked if there would be any impact on my monies. I was told no. That I could leave my money and take my time deciding how to proceed. I was clear that BBB was filing and yet I was not told about any of these fees or deductions. This is a pure money grab and should be illegal.
Fu---d out of $11,000 -thanks bbby!
I rolled over from BBB 401K to empower IRA and then moved to Fidelity a month later. Empower charged me a $95 termination fee.
Please call your representative in congress and also send a letter to your state attorney general. This money grab must stop.
"It's the surrender fee for the Stable Value 3% Fixed Fund. Check the fine print. This is common in this type of guaranteed fixed fund."
Guaranteed fixed return funds are generally money market or short term treasuries, and this fund did NOT indicate it was actually one of those g#% d@#& annuities that have some "unknown date" that must be reached, or you lose 10%. I might even concede 10% of the gain, but not 10% of gain AND principal simply from moving principal into the dern thing a year ago thinking "hey, this is the safest fund according to the damn literature. BS!
Yankee sc-m ! The same scams since 1775 only in a different costume! Rem b by baby .
And yes, get an attorney right away. The way Empower handled this with their reps calling us and letting us know we can comfortably let our money sit and 3 months down the road this happens is definitely going to lead to several lawsuits.
Yes, I took a huge loss and was sick over it for the past couple of days. Empower has you call a contact at BBB and all they tell you is that I wish I had better news.
Empower reps call and tell you that everything is okay and you can leave your money and then this happens. It’s wrong beyond belief!
Sploink!
It's the surrender fee for the Stable Value 3% Fixed Fund. Check the fine print. This is common in this type of guaranteed fixed fund.
What difference does it make?
"Why why why was information concerning this not sent to us??? "......EXACTLY what I discussed with Empower. No paper trail to follow too according to them. The fund agreement was with BBBY and jp morgan apparently, so all the 10% ripoff went to those fat cats. I am livid, and thousands of others should be too!
Why why why was information concerning this not sent to us??? Just another s#+@w over!