Missed Match - Allowed to Defer

[HappyCPC]

We have a client that has an immediate entry for deferrals and 6 month wait for match. ER recognizes service from another ER. When EE came to ER, they were allowed to contribute immediately, but didn't receive match (even if they had worked over 6 months for ER for whom the ER recognizes service). All corrections discuss "missed deferral opportunity," however these employees did have the opportunity to defer just may not have because they did not believe they were eligible for the match. Had they been notified they were eligible for the match, they MAY HAVE contributed. Do they need to contribute a match based on this quasi, missed "match" opportunity?

[Belgarath]

A little tricky to answer without having details. So, let me see if I understand this correctly:

1. Employees were in fact allowed to defer immediately upon hire, and this can be proven via a zero election form.

2. They "may not" have been notified they were eligible for match immediately?

3. Presumably, they were given an SPD as new participants. Does this SPD correctly show that eligibility for the match includes credit for service with prior employer? If so, then I'd say the employer is on firm ground, and does not need to provide a "missed match." If not, I'd still incline toward that conclusion, but recommend SPD be updated IMMEDIATELY to correctly reflect any prior service that is credited toward eligibility for the match.

[HappyCPC]

Belgarath,

Yes you have the facts correct. I appreciate your feedback.

Thank you!