Ugly unemployment facts

With a host of folks having lost their jobs or set to lose their jobs by next week in Columbia Falls when CFAC shuts down, many people are worried about their retirement plans and their health insurance.

There are some cold hard realities about retirement plans and health insurance.

For example, a company can legally terminate 401(k) plans and health insurance plans, a

Department of Labor spokesperson confirmed this week.

Those plans, the Department notes, are voluntary provisions and can be terminated at any time.

Having said that, money in individual 401(k) plans and other pension plans are in accounts separate from corporate accounts, the Department noted, and they still are the employee’s money.

Those plans, when they end, should be rolled over to an individual retirement account, the spokesperson said, to avoid any tax penalities. Simply taking the cash results in a severe tax penalty.

As far as health insurance is concerned, the employer isn’t obligated to extend benefits, the spokesperson said.

But there is help out there, said Carol Roy, market compliance chief with the Montana State Auditor’s Office.

The state has what’s known as the Montana Comprehensive Health Insurance Association that, among other things, helps people who lost their jobs with health insurance.

Folks with children may also want to look into the State Children’s Health Insurance Program, which helps families insure children who can’t afford regular health insurance.

The federal and state governments recently broadened the coverage of SHIP so that it will help more families.

People with questions and concerns about employee benefits and health insurance are urged to call either the state or local offices.

For health insurance questions, you can call the state auditor’s office at (800) 332-6148, and for health insurance and specific questions about 401(k) plans and other retirement plans you should call the Employee Benefits Security Administration at (866) 444-3272.