Odd occurrence with 403B contribution for June

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Odd occurrence with 403B contribution for June

Post by Curly »

For those who have 403B plans and contribute each month, I would be interested to learn if anyone has experienced this scenario before.

Mrs. Curly started contributing to her supplemental 403B plan in January (the plan an optional/supplemental addition to the mandatory state and county retirement plan). The custodian is CoreBridge and she is paid monthly. For each month January thru May, the contributions have appeared in her CoreBridge account within a day or two of payday (not counting days on the weekend). For June, they still don't have the funds. A call to CoreBridge confirmed that they don't sit on the money and once they receive it, it gets invested the end of that day in the fund(s) indicated by the investor.

June payday was on the Weds June 26th. It would be the norm to see the funds invested by Friday the 28th. At the outside, by Monday July 1st.

A phone call to the payroll department resulted in some amount of confusion, but ultimately the answer was " it's the end of the school year, busy times, might be a delay in fund transfers". :confused :annoyed

Not a huge deal in the scheme of things, but just asking the group if this is something that sometimes occurs with these plans. I don't have any frame of reference because I've never had a workplace plan (most of my working life has been self-employed).

Thanks for any comments.
User avatar
retired@50
Posts: 13950
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Odd occurrence with 403B contribution for June

Post by retired@50 »

Curly wrote: Tue Jul 09, 2024 9:43 pm A phone call to the payroll department resulted in some amount of confusion, but ultimately the answer was " it's the end of the school year, busy times, might be a delay in fund transfers". :confused :annoyed
I can see why you used the confused and annoyed faces. This sounds like complete garbage to me. It's not like someone needs to load a sack of cash into their car and deliver it to a bank.

I had a previous employer who was slow from time to time on 401k deposits. I raised the issue, and it was solved in relatively short order. I mentioned that if I hadn't elected to have part of my paycheck deferred into the plan, then I'd already have my money since it would have been included in my paycheck.

Separating people from their money isn't exactly theft, but it's not cool either.

Hope you get to the bottom of this soon.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Retired@50: thanks for the comments. Your (highlighted) example was funny because it is basically what I said to Mrs. Curly after the phone call to the payroll department. "It's not 1956 and Brenda in Bookkeeping doesn't need to do a manual tally on an adding machine and get a check in the mail to CoreBridge". Grrrr, and this is a LARGE government agency, not some small-town school district in some rural county somewhere.

And yes, same thought here: if she didn't participate in the 403B she would have had the funds almost two weeks ago.
retired@50 wrote: Tue Jul 09, 2024 10:42 pm
I can see why you used the confused and annoyed faces. This sounds like complete garbage to me. It's not like someone needs to load a sack of cash into their car and deliver it to a bank.

I had a previous employer who was slow from time to time on 401k deposits. I raised the issue, and it was solved in relatively short order. I mentioned that if I hadn't elected to have part of my paycheck deferred into the plan, then I'd already have my money since it would have been included in my paycheck.

Separating people from their money isn't exactly theft, but it's not cool either.

Hope you get to the bottom of this soon.

Regards,
crefwatch
Posts: 2660
Joined: Sun Apr 15, 2007 1:07 pm
Location: New Jersey, USA
Contact:

Re: Odd occurrence with 403B contribution for June

Post by crefwatch »

In the 1970's, my small performing arts charity employers regularly took their time to deliver 403(b) contributions. Cash Flow, I'm sure. There were no matching funds, BTW.
student
Posts: 11249
Joined: Fri Apr 03, 2015 6:58 am

Re: Odd occurrence with 403B contribution for June

Post by student »

Did you check to see whether this is happening to everyone?
User avatar
scotchbriar
Posts: 21
Joined: Thu Dec 08, 2022 9:01 pm
Location: Sawtooth Mountain Bunker

Re: Odd occurrence with 403B contribution for June

Post by scotchbriar »

Been contributing to a 403b for a long time. My place of employment currently uses a third-party provider to transfer money to the brokerages. In my case, it is to Fidelity. Normally It takes anywhere from 3 business days to 10 business days for my money to arrive at Fidelity. Up to five business days after pay day I can handle, but the 6-10 days business days upsets me and I let my HR department know when that happens. When calling the third-party provider we have heard things like work load, training new people, holidays, etc on why transfers are delayed. The extreme case for me this past year was that one month was so delayed that my next's months actually arrived before the previous month's contribution! The answer I got on this delay was that they claimed Fidelity changed their process and the third-party provider used the old process so Fido rejected the transfer. Talking with our HR department they worked with provider to make me whole and actually gave me more $$$ to account for the small gains I would have seen if the money was put into my account on the normal time frame. I have found that contacting the brokerage does little since they will say that the third party provider has up to 30-days (yes, that is what they told me) to get the money transferred. Contacting the HR department seems to be the best as they are the one that handles the contract with our third-party provider to get money transfers to the brokerages and have some leverage. HR can also let you know if this is specific to you, or a wider vendor issue impacting all their employees.
Scotchbriar | | “Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition.” Thomas Jefferson
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Thanks for the comment. She would do this, except she doesn't know anyone at the school who participates in this optional 403B program. There might be only a few, or many, but I guess no one has ever mentioned their situation.
student wrote: Wed Jul 10, 2024 6:11 am Did you check to see whether this is happening to everyone?
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Thanks for the comment. Back then, I bet it was a check in the mail routine for your employer, and they could work things to their advantage with "the float".
crefwatch wrote: Wed Jul 10, 2024 5:52 am In the 1970's, my small performing arts charity employers regularly took their time to deliver 403(b) contributions. Cash Flow, I'm sure. There were no matching funds, BTW.
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Scotchbriar, thanks for the comments. At least I know it's not unusual for this stuff to happen. This is our first experience with any plan like this and didn't know what to expect. We are in a position now where we can max out the 403B each of the final five calendar years leading to Mrs. Curly's retirement. But now I am wondering if it will be an ongoing annoyance as we will never be sure about the funds getting dropped in the account.

Your mention of the "30 day window" for transfer of funds is a bit shocking. I had read everything offered when Mrs. Curly signed up for this 403B and never saw anything one way or the other about required timeframes for transfer of funds.

scotchbriar wrote: Wed Jul 10, 2024 9:39 am Been contributing to a 403b for a long time. My place of employment currently uses a third-party provider to transfer money to the brokerages. In my case, it is to Fidelity. Normally It takes anywhere from 3 business days to 10 business days for my money to arrive at Fidelity. Up to five business days after pay day I can handle, but the 6-10 days business days upsets me and I let my HR department know when that happens. When calling the third-party provider we have heard things like work load, training new people, holidays, etc on why transfers are delayed. The extreme case for me this past year was that one month was so delayed that my next's months actually arrived before the previous month's contribution! The answer I got on this delay was that they claimed Fidelity changed their process and the third-party provider used the old process so Fido rejected the transfer. Talking with our HR department they worked with provider to make me whole and actually gave me more $$$ to account for the small gains I would have seen if the money was put into my account on the normal time frame. I have found that contacting the brokerage does little since they will say that the third party provider has up to 30-days (yes, that is what they told me) to get the money transferred. Contacting the HR department seems to be the best as they are the one that handles the contract with our third-party provider to get money transfers to the brokerages and have some leverage. HR can also let you know if this is specific to you, or a wider vendor issue impacting all their employees.
student
Posts: 11249
Joined: Fri Apr 03, 2015 6:58 am

Re: Odd occurrence with 403B contribution for June

Post by student »

Curly wrote: Wed Jul 10, 2024 10:59 am Scotchbriar, thanks for the comments. At least I know it's not unusual for this stuff to happen. This is our first experience with any plan like this and didn't know what to expect. We are in a position now where we can max out the 403B each of the final five calendar years leading to Mrs. Curly's retirement. But now I am wondering if it will be an ongoing annoyance as we will never be sure about the funds getting dropped in the account.

Your mention of the "30 day window" for transfer of funds is a bit shocking. I had read everything offered when Mrs. Curly signed up for this 403B and never saw anything one way or the other about required timeframes for transfer of funds.

scotchbriar wrote: Wed Jul 10, 2024 9:39 am Been contributing to a 403b for a long time. My place of employment currently uses a third-party provider to transfer money to the brokerages. In my case, it is to Fidelity. Normally It takes anywhere from 3 business days to 10 business days for my money to arrive at Fidelity. Up to five business days after pay day I can handle, but the 6-10 days business days upsets me and I let my HR department know when that happens. When calling the third-party provider we have heard things like work load, training new people, holidays, etc on why transfers are delayed. The extreme case for me this past year was that one month was so delayed that my next's months actually arrived before the previous month's contribution! The answer I got on this delay was that they claimed Fidelity changed their process and the third-party provider used the old process so Fido rejected the transfer. Talking with our HR department they worked with provider to make me whole and actually gave me more $$$ to account for the small gains I would have seen if the money was put into my account on the normal time frame. I have found that contacting the brokerage does little since they will say that the third party provider has up to 30-days (yes, that is what they told me) to get the money transferred. Contacting the HR department seems to be the best as they are the one that handles the contract with our third-party provider to get money transfers to the brokerages and have some leverage. HR can also let you know if this is specific to you, or a wider vendor issue impacting all their employees.
You may find this helpful. https://www.futureplan.com/resources/ne ... s-exactly/
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Student: Thank you! Useful info to have!


student wrote: Wed Jul 10, 2024 11:08 am
You may find this helpful. https://www.futureplan.com/resources/ne ... s-exactly/
User avatar
Topic Author
Curly
Posts: 109
Joined: Thu Jan 25, 2024 9:39 pm

Re: Odd occurrence with 403B contribution for June

Post by Curly »

Update: thanks to the link provided by student, I went on the hunt for plan documents at the employer's website. Assuming I found the document that is most up-to-date, the plan states they have 15 business days in the month following the month of the payroll event. So, it looks like this is a non-issue until at least the EOD July 22nd. :shock:

Thanks to all who provided input.
Post Reply