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Pre-2009 violations


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A NQP previously included a provision that gave the employer prohibited discretion to either pay a lump sum or over 5 annual installments following a valid payment event.

If payment was actually made as a lump sum before 2009 (and assume no amount is grandfathered), did an operational violation occur in the year of lump sum? The guidance is clear for periods beginning in 2009 pursuant to 2010-6 (and the operational violation correction under -113 is equally clear; and I know the transition relief for correcting an earlier violation has expired), but what about periods before 2009?

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