Missed match

[Pension RC]

Two employees were hired some time ago (maybe a year ago). They started part-time and, therefore, were considered ineligible to participate in the match. It turns out that they both were, in fact, eligible. Therefore, the company will be correcting the failure. One of the employees is truly a new hire and the other is a rehire. The new hire wants to start her match at 8% and the rehire wants to start it at 15% (which is what he was doing before he left the company two years ago). The question is whether the company’s correction must be based upon the 8% and 15% or can it be based upon the 3% match which is part of their automatic enrollment.

Thanks for any responses!

[Bill Presson]

The IRS issued new guidance this spring.

https://www.irs.gov/Retirement-Plans/New-Methods-for-Correcting-Elective-Deferral-Errors