Some money of Island Air's missing 401K plan to be restored

Updated: Dec. 12, 2017 at 8:31 AM HST
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HONOLULU (HawaiiNewsNow) - There's some hopeful news for former employees of Island Air affected by the company's sudden shutdown.

After the loss of benefits and inability to access 401K accounts, the Star Advertiser reports some of the money will be restored.

Some $35,000 will be put back into the proper accounts after the airline deposited some of the money into wrong ones.

A bankruptcy judge ruled Monday that the funds must be restored.

It is still unknown when the former employees will actually be able to access their 401K accounts because there's no one authorized to help with the retirement plan.

The 401K plan was "self-administered" by the company. Since all employees were terminated, former employees have no proper assistance accessing their funds.

It's the latest development in the trying times the employees have faced since the airline's closure in November.

Former competitor, Hawaiian Airlines, held a job fair to help terminated employees seek work.

"It is frustrating, especially for the people that have families and are dependent on this paycheck," former Island Air worker Macyn Lautalo told Hawaii News Now last month. "I feel sorry for them. It's the holidays and people need their money."

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