Hardship issued with no provision

[Lori H]

a small 10 participant new comparability psp issued a hardship in calendar year 2014 to a rank n file employee, yet the plan does not have a hardship provision. Furthermore, the distribution ($8900) was in excess of her vested account balance ($5550). Is this a SCP filing?

[QDROphile]

A VCP filing to add hardship provisions retroactively will probably be successful with respect to what an appropriate hardship provision would have allowed. Some thinking should be done about the tenure of the vesting provision. Similarly, retroactive vesting would probably be allowed, but some similar thinking about exactly what the amendment would be is appropriate. Better late than never for thinking what the plan terms should be.

[Kevin C]

The hardship distribution can be corrected with an amendment using SCP under Rev. Proc. 2013-12, section 4.05(2), which refers you to section 2.07 of Appendix B.

If you are going to correct the overpayment under SCP, it can't be done with an amendment. To change the vesting schedule, you would need a VCP filing.