Union Employee Exclusion

[Guest ckling]

I have a prospect plan that has a 401k plan which has been in place for 10+ years. The plan document currently excludes union members. When the current TPA requested census data for the 2010 plan year, the employer sent in all employees W2's. Upon reviewing the W2's, it was noticed that 5 HCE's that have been contributing for 10+ years were UNION MEMBERS and 20+ employees who were never included on a previous census were also UNION MEMBERS. I know this is an operational failure, but I can not find any documenation on correction methods. How does the employer correct this operational failure?

[ETA Consulting LLC]

VCP.

You would want a clear fact pattern. For the union exclusion, the benefits must be subject to good faith bargaining in order for this exclusion to apply; merely being "union" does not make you excludable. There are also mandatory disaggregation issues. For instance, a union employee is only union with respect to compensation received as a union employee. Hard to fathom, but if there is non-union compensation, then that would be plan eligible.

These are just a few thoughts to structure the issue.

Good Luck!