ACP excess was forfeited instead of paid

[BG5150]

I have a plan that had several ACP excesses for 2007 that were forfeited instead of paid out. The people were not 0% vested (some were not 100%, but all were partially vested, at least).

What is the remedy? Are they paid out of the forfeiture account, plus earnings from the date the distribution was done? And is the ER on the hook for the 10% excise tax? The money was taken out of the HCE accounts, just not out of the plan.

Your thoughts are appreciated.

(The forfeitures were done before 3/15/08)