ERISA Rookie

Thanks for the response, Lou. I agree a true up might be necessary, but wouldn't a retroactive amendment to Plan B that provides for the ER match of 2% be simpler, and less costly? Is this possible with a merged/termed plan? EPCRS provides: "Availability of correction for a terminated plan. Correction of Qualification Failures and § 403(b) Failures in a terminated plan may be made under VCP or Audit CAP, whether or not the plan trust or contract is still in existence"

Hi all. I have a client who merged two 401(k) plans starting 1/1/22. Plan A (the surviving plan) provides for an ER match of 100% up to 5% of a participant's compensation. Prior to the merger, Plan B's plan document called for a discretionary matching contribution at the end of plan year. Turns out, for 2021, Plan B was administered using a 2% match every payroll. Of course, the Plan B's plan documents were not amended accordingly. Plan B participants were notified of the change in ER match (which was administered in a non-discriminatory fashion and was more generous than what the plan document provided for). Are corrective measures needed here? Specifically, my questions are as follows: 1) Are we permitted to retroactively amend Plan B following completion of the merger (which was effective 1/1/22)? If so, do we have to resurrect Plan B to amend since it merged with Plan A effective 1/1/22? Or, can we simply amend surviving Plan A to reflect the fact that the prior Plan B was administered during 2021 using a 2% match? Is that even necessary, given the fact that participants received an increased benefit in a nondiscriminatory manner? Any help is welcome. Thank you.