Calculation of missed earnings - money purchase plan

[Guest jc1457]

Hi,

We have a small money purchase pension. Two participants were missed for a number of plan years. We are going to correct under VCP. I have read EPCRS and want to make sure I handle this correctly.

We will be depositing missed employer contributions and missed earnings. Regarding the missed earnings, we have plan records and will be allocating the rate of return earned by the Plan for all years. In years that there is a loss, we will be allocating a loss. I don't see anything in EPCRS that prevents us from allocating loss earnings.

Regarding allocating a loss on the missed contributions - does everyone agree that this is allowable? Just want to make sure that I haven't missed anything which would prevent me from doing this.

Thanks so much.

[ESOP Guy]

In this thread I wasn't sure Recline's answer was correct for those facts. (Although in that thread I was willing to be told he was right so no offence attended towards you Recline)

But I believe his answer is relevant for your facts. But VCP is NOT my strongest area of knowlege.

http://benefitslink.com/boards/index.php?s...l=lost+earnings

[Guest jc1457]

Thanks ESOP - I will check this out.