Mutual Fund Won't Release My Funds

[brookline]

I'm having a lot of trouble getting Newport Trust to release my funds to roll over from a 403(b) they are holding to an IRA with another company. I'd love to hear ideas on how to get them to cough up my money. Here is the background. I worked at a job from 2006 until 2011. I had a 403(b) account while at that job through Vanguard. In summer 2017, Vanguard announced they were moving all such accounts to Newport in November. Monthly fees were imposed for those who chose to keep their funds with Vanguard. After the changeover, fees continue for those who keep their funds with Newport. In November, I sent a package of forms to Newport to withdraw my funds and with a request they send them to Fidelity for transfer to an IRA. Sounds simple, yes?

Apparently, not. The forms for the transfer were provided by Vanguard. I had called Newport prior to submitting the forms to ensure they would accept Vanguard's distribution forms. They said yes. (As of last week, I couldn't find an alternative form on Newport's website.) My former employer signed off on the form indicating that I had left my employment. Newport is insisting the documentation is inadequate and that they need a telephone call from my former employer to confirm I've left my employment. I will say I went to great difficulty to get that letter from the old employer. The agency has downsized considerably & all my friends there have long since left. There is no chance of a call coming from them. Starting the week of January 10, 2018, I've called Newport two or three times to check status on the release of my funds. Wait times average 40 minutes or more on the phone and no one ever calls back. I should add that no one from Newport called me after I submitted my request for the return of my funds to let me know they found my employer's response on the Vanguard form was insufficient. Anyone have ideas on how to shake my funds loose?

[slowtraveler]

Have you tried having Fidelity initiate the transfer rather than Newport?

[brookline]

Have you tried having Fidelity initiate the transfer rather than Newport?

Hi Slowtraveler,
Yes, I asked at the beginning of this process. Fidelity wasn't willing to do that.

[unemployable]

https://www.dol.gov/general/topic/retirement/erisa

I'm sure there's something in there these Newport people are violating. Next time you're on the phone with them, ask for a name and address to which process can be served. Barring that, start saying things such as "So I'm going to have to sue to to get my money back because written clearance from my former employer isn't enough" and commenting directly on their customer service.

Time to play hardball.

[Kriegsspiel]

Calling companies on the phone is a mistake. You want to create a paper trail. Act like an unemotional professional, don't threaten them with a lawsuit.

[Jason]

Newport is insisting the documentation is inadequate and that they need a telephone call from my former employer to confirm I've left my employment.

So they are the one company in the world that prioritizes verbal confirmation over written confirmation.

Threatening to sue will get you nowhere. They know damn well you are not suing and like all corporate vs. personal cases they have a team of monkeys prepared to milk you until your legal costs exceed your fund costs. Just keep writing but I have a feeling its a futile task.

[RealPerson]

I am no expert by any means, but I wonder if you could approach the investment firm and say that you would like to get this resolved without getting the Securities and Exchange Commission involved. Here is their complaints web page: https://www.sec.gov/tcr

A complaint with SEC could open up a can of worms for the company. And it doesn't cost you a dime. I suspect this financial firm would rather not go that route. But I would first let them know your plans and give them a deadline. Then file the complaint if needed. It doesn't look like you have anything to lose at this point. Best of luck.

For what it is worth, we had a similar problem with TIAA CREF. We wanted funds moved to Vanguard, and TIAA CREF was dragging their feet. Vanguard offered to be on a conference call with us and TIAA CREF. After that one call the issue was resolved. Vanguard told us that this is a common problem.

[OTCW]

Call your state's attorney generals office explaining the situation. Take their advice.

[unemployable]

Calling companies on the phone is a mistake. You want to create a paper trail. Act like an unemotional professional, don't threaten them with a lawsuit.

I generally agree, but when you run through your options, using the justice system IS the unemotional, businesslike thing to do. This would be small claims anyway, where someone would have to actually show and testify rather than trying to drown you in procedure. (In some states the parties meet separately with a "mediator" in an effort to pre-empt the judge.)

I'm not saying sue immediately, but if they continue their recalcitrance let them know you have that arrow in your quiver. It is the only way to deal with debt collectors, for example. I'm more familiar with ERISA because it was my career, but other have mentioned the SEC or AG.

It's OP's money; what the hell is their problem?

[Jason]

I think its common in many industries to withhold small payments or transactions because the float on the aggregate is huge and its easy to hold off and beat down ordinary individuals trying to make claims.

[brookline]

I am no expert by any means, but I wonder if you could approach the investment firm and say that you would like to get this resolved without getting the Securities and Exchange Commission involved. Here is their complaints web page: https://www.sec.gov/tcr

A complaint with SEC could open up a can of worms for the company. And it doesn't cost you a dime. I suspect this financial firm would rather not go that route. But I would first let them know your plans and give them a deadline. Then file the complaint if needed. It doesn't look like you have anything to lose at this point. Best of luck.

For what it is worth, we had a similar problem with TIAA CREF. We wanted funds moved to Vanguard, and TIAA CREF was dragging their feet. Vanguard offered to be on a conference call with us and TIAA CREF. After that one call the issue was resolved. Vanguard told us that this is a common problem.

SEC has an online complaint process. I filed a complaint about 10 days ago. I haven't heard anything back. I'm concerned that many securities companies in their contracts impose mandatory arbitration clauses on their customers for disputes. So SEC may not be able to litigate this even if I get lucky & they take an interest in helping little me.

[brookline]

Call your state's attorney generals office explaining the situation. Take their advice.

Will do!

[brookline]

I think its common in many industries to withhold small payments or transactions because the float on the aggregate is huge and its easy to hold off and beat down ordinary individuals trying to make claims.

Agreed. I'm being charged $15 a month on the fund they are holding plus the usual fees. I'm very profitable for these vultures.