Pammie57 Posted September 7, 2016 Posted September 7, 2016 During 2015, match was incorrectly calculated for several NHCE employees - they all received too much match money. My question is - if we move this excess to the forfeiture account - what, if any, earnings are required to be calculated and what is an acceptable method to calculate earnings? What if their account had a loss during 2015? Do we HAVE to reduce the amount moved to forfeiture by the loss? I don't think any refunds would be in order since they were not due this match in the first place. Thoughts? suggestions? Thanks!
Lou S. Posted September 7, 2016 Posted September 7, 2016 Actual earnings is an acceptable method. If there was a loss, yes you would have to reduce the amount forfeited by the loss. The participant should NEVER be put in a worse position than if the error did not occur. hr for me 1
My 2 cents Posted September 7, 2016 Posted September 7, 2016 The method to be followed in correcting the error does not depend on whether the participant is a highly-compensated employee or a non-highly compensated employee, does it? Always check with your actuary first!
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