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A Ramsey County employee has filed a lawsuit alleging the county has mishandled distribution of some matching retirement funds.

Allison Schaber, a deputy sheriff who is seeking class certification in the lawsuit, alleged that the county has not directly deposited matching funds into employees' deferred compensation plans, which are similar to a 401(k) retirement account. Rather, the county has been paying out the matching funds in employees' paychecks.

"Over the continuous objection of employees, Ramsey County instead diverted monies to employees' paychecks as regular taxable compensation, denying employees of retirement investment revenue," according to the suit filed in Ramsey County District Court.

According to the lawsuit, full-time employees are eligible for $35 a month in matching funds, or $420 a year.

Ramsey County officials declined to comment.

The county has two deferred compensation retirement programs in addition to its pension program, according to the county. About 2,300 employees participate in those deferred compensation programs.

Ramsey County has about 3,800 employees, according to its most recent workforce statistic report.

Schaber is also the president of the Ramsey County Deputies' Federation, but she is filing as an individual employee, her attorney said.

Shannon Prather • 651-925-5037