EPCRS

[Nassau]

A participant enrolled in the plan at 4% in May of 2007. The participant had one payroll deduction taken in that month, but due to a Recordkeeping error, those deductions stopped. Supposedly, the participant just realized that deductions were not being taken and called on 3/27/08 to restart her deductions at 4%.

In situations where corrections are required, I understand that corrective contributions are made to the participant account in the form of a QNEC in the amount equal to 50% of the missed deferrals, plus earnings. I also understand that the client would have to put in all attributable match for that time period plus earnings (which would also be funded by the Recordkeeper).

My first question is: Is this participant entitled to a QNEC at this point due to the amount of time that has lapsed? Is there a "statute of limitations" on this type of situation, or are we responsible to make corrective contributions for any time period?

My second question is: If a correction is required, up to what date to we owe QNEC's? Up to the most recent time period, or only until 12/31/2007. The participant called in on 3/27 to change deferrals back - does that technically fall within the "9-month rule" where she still has enough time in 2008 to make up missed contributions from the first three months?