doc allows catchups, payroll sdept. does not

[Jim Chad]

I wonder what people think of this. Document allows catchup contributions. Employer is thinking about simplifying his life by stopping everyone ate $16,500 in 2009. Is it ok to make this kind of administrative decision or should we amend the Document?

[J Simmons]

Amendment needed. The plan must be operated as written, to the extent consistent with ERISA. Otherwise, a fiduciary violation. ERISA § 404(a)(1)(D).

[Jim Chad]

Can you give me an example of anything that can just be a payroll policy?

[John Feldt ERPA CPC QPA]

Unless your document has a requirement in it, the procedure and the timing for how often deferrals may be changed is normally administrative (meaning it does not have to be in the document).