Failure to Withhold Mandatory Contributions

[BTG]

In a DB plan with mandatory employee contributions, the employer has not been withholding enough from employees' pay to cover the mandatory contributions required by the plan (due to improper exclusion of certain amounts from compensation). This has been going on for a while, so some of the affected participants are now retired. Any thoughts on how to correct this under EPCRS?

One option would be a retroactive plan amendment to exclude the amounts from compensation for purposes of mandatory contributions, but that would require a VCP filing.

Under SCP, it would seem that this would require some variation of requiring the participants to make a payment to the plan, but it seems like there would be a lot of practical issues with implementing this, especially in the case of retired participants.