ComplaintsforBlueStar Retirement Services, Inc.

• Initial Complaint

  10/16/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Bluestar retirement firm was not clear about the loan rollover I had on my 401k account. It was communicated to me that if I rollover my old account a loan associated with it can be rolled over as well. But after closing the old account and I contacting them few times they stated that they do not accept loans and offered no solution to the situation.

  Business response

  10/17/2022

  Below is what was communicated to Mr. **********
  “We have reviewed our records related to your inquiry about  the rollover of your outstanding loan balance from your prior Plan provider (3rd party administrator).  Please note the following:
  
  You inquired about rolling over your outstanding loan balance on 8/19/22 from a 3rd party administrator and our representative informed you that she would have the Plan Document reviewed to see if  this was a provision allowed by the Plan.
  After review of the current Plan Provisions by our Account Manager on the Plan, it was confirmed that the rollover of outstanding loans from a 3rd party administrator are not permitted.  This was conveyed to you by our representative on 9/14/22.
  There was a Webinar presented on transitioning to the Plan and balances coming from the ********* **** (including outstanding loan balances) would automatically transfer to the ********* ****.  However,  our records indicate that your balances did not come from ********* but were rolled over from a 3rd party administrator. In that situation the Plan Provisions do not allow the rollover of an outstanding loan balance.”
  Since this plan is governed by ***** and the plan provisions are determined by his former employer, he would need to discuss this option with them or go through the claims process as found in the summary plan description.   We are bound to the provisions of the plan made by his employer.  We are considering this matter closed.  Tell us why here...

  Customer response

  10/18/2022

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

   Complaint: ********

  I am rejecting this response because:

  if bluestar review their recorded phone calls, they would find that I very clearly asked their agent about the loan transfer, the agent requested few days to investigate and she called me the next week and told me the new account accepts the loan rollover. She also helped me find the rollover documents.

  I respectfully reject the response from bluestar representative and request a copy of all the recorded phone calls between me and their representatives to clarify this matter.

  Regards,

  ******* *********

  Business response

  10/19/2022

  As discussed in our previous response, these are plan decisions decided by his employer.  Given this, he will need to speak to his employer on this issue and any plan design changes.

• Initial Complaint

  10/03/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On August 12, 2022 I called and spoke to someone at Bluestar Retirement regarding my 401K that I had been laid off from work and wanted to close out my 401K, they explained that I should wait till that Friday to call because I had another check from my company that would have more 401K money taken out which made sense so I called on August 16, 2022 to close out my 401K they stated that the check would go out in 2 weeks so I waited till September 12, 2022 which would give them enough time to send out the check, when I called that day they stated the check was either mailed August 25th or 26th so I explained to them that I never received the check and I would rather have the check sent over night so they explained that it's $30 which comes out of my 401K and I stated that was fine never mind they charged $100 for processing fee at the beginning when I called and asked for to close out my 401K they also stated they had to wait for the IRS to send back my tax money since I asked for the the to be over night which I didn't understand so again I asked how long it would be they stated at least 2 weeks, on September 20, 2022 I called again on September 20, 2022 and asked when the check will be sent they stated still waiting for the IRS to send the money back, on September 26, 2022 I called again and asked when the check will be sent out they stated it was over knighted that day gave me the tracking number ****************** so I looked up the number and it stated it would be delivered on September 27th by 12pm, today is September 28th at 12:10pm and still no check. I am not sure if this tracking number is fake or what but i seem to be getting the run around from Bluestar, I am asking for $130.00 to be refunded to me $100 processing fee and the $30 for the over night check to be sent to me. iI am waiting for my money I have been laid off and have bills to pay. Please feel free to give me a call if you have nay questioned. Thank you

  Business response

  10/03/2022

  Your shipment

  ******************

   

   

    Delivered On

  Friday, September 30 at 11:52 A.M. at Front Door

  Customer response

  10/03/2022

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

   Complaint: ********

  I am rejecting this response because: when the check was mailed over night they knew I wouldn’t receive in 24 hours, the check was brought to the ups at 6pm which you missed the deadline for it to be sent out within 24 hours this is per ups if you knew there was a hurricane why didn’t you send it out after when I would have received it with in 24 hours? I accept paying the $100 fee but I paid the -$30 to have my check over nighted so I think I should get a refund of $30.00 another thing I had over $7000 in that account the day I closed it and the check stated I only had $6556.31 where the rest of that money

  Regards,

  ******** **********

  Business response

  10/04/2022

  The details of the UPS delivery were explained earlier. The participant acknowledged that during review and processing, her account would continue to fluctuate. Since this is an ERISA plan, all claims and appeals would need to follow the process as found in the summary plan description.

• Initial Complaint

  09/20/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  My employer used Bluestar Retirement to facilitate my 401k. I was laid off by that employer and was planning on contacting Bluestar to have them rollover my balance to my IRA. I logged in to do this and saw my balance was 0. I contacted Bluestar who told me my money was moved to Millennium Trust. (Balance was minus $100 "processing fee"). I called Millennium Trust and they do not have my money. So basically Bluestar has lost my 401k balance.

  Business response

  09/20/2022

  BlueStar was following the terms of the plan document and the plan sponsor for the retirement plan.  Since it was a small balance, it was forced out of the plan (after termination) based on the plan’s document provisions.  An initial letter explaining the participant's distribution options and election due date was sent to the participant on July 28th.  Since no action was taken by the participant, it was sent to Millennium Trust on September 14th.   It normally takes two weeks for the account to be set up.  The account is probably still being set up by Millennium and the participant should call back in a few days to check on the status.   The participant can then roll over the amount from Millennium to whoever they wish.  Lastly, since this is an ERISA plan, all complaints need to be submitted to the plan.  Please reference to the Plan’s Summary Plan Description for more information. 

  Customer response

  09/20/2022

   

   ********** ********

  I am rejecting this response because:

   

  1) I was never notified that you were moving my money.  I was in the process of requesting it rollover to LPL Financial which and noticed I have a $0 account balance.  I was only informed that it was "moved" after I called.  I was given a number for Millennium Trust and told they have my money.  I called Millennium Trust and they have no trace of my money.  Your answer is nowhere near good enough.  Don't pawn it off on my former employer.  My 401k contribution doesn't exist at MT ACCORDING TO THEM!  THEY TOLD ME TO CONTACT YOU BECAUSE THEY DO NOT HAVE ANY TRACE OF ANY TRANSFER OF FUNDS.

  Further, I was already charge $100 to rollover.  I refuse to pay another fee to rollover to LPL Financial, the broker that handles my personal IRA.  

  And you people screwed up with the % of what I wanted removed from my paycheck which is a whole other issue that I let go.  In short, you have operational issues and I should not have to pay for it.  A quick Google search will show just how many people have been impacted by your dysfunctional operations.
  
  

  Regards,

  ****** ********

  Business response

  09/21/2022

  I have attached the letter that was sent to you for your review.   We were following the terms of the plan.   Your summary plan description and the plan document speak about balances being forced out.   The summary plan description also speaks about filing a claim to the plan.   Since this is an ERISA plan, you will need to follow that process for complaints. 

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