If a company delays retirement savings contributions, preventing loan approval, employees should first review their company’s retirement plan policy and ERISA compliance guidelines. They should then contact human resources (HR) or a plan administrator to formally request the delayed contributions be remitted. If unresolved, employees may escalate the issue to the Department of Labor (DOL) or file a complaint under the Fair Labor Standards Act (FLSA). Legal consultation or involvement of a financial advisor is advisable if the delay persists, as it may violate employee benefits regulations.

The primary reason employees should act promptly is to avoid penalties, legal repercussions, or financial harm. Delays in retirement contributions often stem from administrative errors, corporate financial strain, or noncompliance with ERISA requirements. For example, a 2022 DOL report found that 7.3% of retirement plan violations involved delayed contributions, leading to an average of $12,500 in penalties per affected employee. Additionally, the National Institute of Retirement Security (NIRS) estimates that 40% of workers face loan denials due to insufficient retirement savings, directly tied to employer-related delays. Under ERISA Section 404(c), employers are responsible for ensuring timely contributions, and failure to do so may result in lawsuits or DOL sanctions. Proactive communication and documentation are critical to resolving such issues efficiently.