Leaderboard

In this case, the employer should NOT approve it. HOWEVER, he can ask that the participant re-examine his situation, give him a CRD form that shows the conditions (as of now) that is necessary, and then asks the participant to self-certify. The employee was an idiot to disclose this non-eligible situation AT THAT TIME, but he can certainly have a change in his situation that now would qualify him. And again, all he has to do is self-certify. Understand?

l Are we still in the same year? For how many paychecks was this error made? Would participant accept the 12% for that limited time? Can the future checks be reduced to 8% for an equivalent number of paychecks if the employee wants to "catch down"? Sometimes there are practical answers that may not be the absolute same as what the "corrective" rules would expect. FWIW.

Agree. The article does a nice job explaining the issues and solutions. I am including a link to the referenced article. https://www.asppa.org/news/browse-topics/defined-benefit-plan-termination-funding-deficiency