Failure to List Acquired Companies for Crediting Service

[401 Chaos]

What is the most typical method for correcting a plan's failure to list recently acquired subsidiaries among the list of predecessor employers for which service is credited for vesting purposes? For example, company forgot to timely amend its plan to list a company acquired in 2006 among predecessor companies for which the plan recognizes years of service. Can the plan simply amend the plan retroactively to recognize this past years of service since this is all for the benefit of participants (and actually consistent with the plan's administration) or does this have to be done as a restroactive amendment through EPCRS?

[Guest Dressageho]

This would really depend on what you're correcting. Was it a violation of the Plan document or just not in line with what the employer actually wanted to happen. If it violated any provision under the Plan, you may have to go through the EPCRS. However, if it's just what the employer wants, the IRS will never target an employer for amending the Plan to accelerate vesting (unless, of course, it's discriminatory).

[401 Chaos]

Thanks, I think you put your finger on my concern. For the past few years, the plan has been operated (i.e., employees have been given credit for years of service with old employer) even though the plan document did not provide for that. The plan has an adoption agreement that provides the employer the clear ability to specify prior employers for which service credit is credited but they just forgot to do that on a timely basis (i.e., they've done that for other companies in the past but just didn't add this company to the list). So the plan would permit them to do what they want to do; it just seems to be a failure to operate the plan in keeping with its terms because the plan had not been timely amended to do that? Not sure if that makes sense but seems to suggest you do have to go through EPCRS. My understanding is that in order to get a retroactive amendment under EPCRS you are sometimes required to file for a determination letter on the plan as well. Wondering if EPCRS with determination letter request is required here?