MPP over contributed to termed employee

[Guest gbialikcpa]

I have a money purchase pension plan that contributed more than the plan limit to an employee's account (the compensation amount was incorrect). By the time the error had been discovered the employee had already terminated and rolled over the account balance.

We're trying to get the custodian to return the excess, but they are resistant. The former employee is offering to cut us a personal check (it's not a lot of money). Would this be OK?

What else could be done?