Coastal Pediatric Begins 401(k) Repayments After $627,000 Shortfall Hit 250 Workers
Updated
Updated · Live 5 News WCSC · Jul 2
Coastal Pediatric Begins 401(k) Repayments After $627,000 Shortfall Hit 250 Workers
1 articles · Updated · Live 5 News WCSC · Jul 2
Summary
At least seven former Coastal Pediatric Associates employees say they began receiving deposits on June 22, but several described them as only partial repayments of withheld 401(k) money.
The company’s attorney said all outstanding employee deferrals and matching obligations for 2023 through 2025 have now been deposited, while the remaining 2022 match and lost earnings are still being funded.
Department of Labor notes cited in the report said the four partners owed about $627,000 as of January, excluding additional accruals; more than 90% of roughly 250 employees were in the plan.
Former HR director Donna Howard said she is still short roughly $3,700 of the $4,500 she believes she is owed, and other ex-employees also said they remain unpaid for some principal and investment gains.
The repayments come as a DOL review continues and Coastal Pediatric faces nearly a dozen other lawsuits alleging almost $2 million in unpaid rent, supplies and services.