Floor earnings under VFCP?

[chris]

At first glance, it appears that the 6621a2 underpayment rate is a floor rate of return to be used in determining the lost earnings amount under VFCP. However, the reg's state shortly after that that

... "For a participant-directed defined contribution plan, the lost earnings to be restored to the plan is the amount that each participant would have earned on the principal amount from the loss date to the recovery date. However, for administrative convenience, the lost earnings amount for a participant-directed defined contribution planmay be calculated using the rate of returnof the investment alternative that earned the highest rate of return among the designated broad range of investment alternativesavailable under the plan during the applicable period."

Based on the use of the term "lost earnings" it would seem that the 6621a2 underpayment rate is not the floor rate of return. Any suggestions?