Her 401(k) contributions vanished—and her company had no answers

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Amanda Otter, a Washington State communications consultant, discovered that over $50,000 in retirement savings had vanished from her 401(k) account due to unexplained failures by her employer to properly deposit payroll deductions
• Her three-year effort to recover the funds highlights deep systemic vulnerabilities in how small employers administer retirement plans — and how limited oversight leaves workers at risk of losing critical long-term savings

🔭 The context: Roughly half of U.S. private-sector workers participate in 401(k)-style plans, many of which are managed by small or midsize companies with limited financial oversight
• While federal law requires timely deposit of employee contributions, enforcement by the Department of Labor (DOL) is often reactive and under-resourced
• In Otter’s case, she discovered that while contributions were deducted from her paycheck, they were only partially or never transferred into her account, with little recourse available outside of formal legal action

🌍 Why it matters for the planet: Long-term financial security and institutional trust are cornerstones of a socially sustainable economy
• Failures in basic retirement plan governance disproportionately harm lower- and middle-income workers, often undermining financial resilience
• As climate and economic volatility increase, ensuring reliable retirement infrastructure is essential for just transitions, intergenerational equity, and sustainable workforce planning

⏭️ What's next: Otter’s case has prompted inquiries from the Department of Labor, but she has yet to recover her full funds
• Advocacy groups are urging Congress to strengthen oversight of small retirement plans, mandate automatic audit triggers, and enhance penalties for fiduciary failures
• Workers are being advised to routinely monitor contributions and seek prompt written clarification when discrepancies arise

💬 One quote: "If I hadn't checked, that money would have just been gone. Most people would never even know." – Amanda Otter

📈 One stat: Over 26,000 cases of 401(k) plan violations were investigated by the U.S. Department of Labor in 2024, recovering $1.7 billion in missing or mismanaged retirement funds

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