Employer Match

[lisan1025]

I have a off-calendar plan 9/30/19 pye. They started contributing a Match (100% up to 1% compensation) per pay on 4/1/19.  Their Plan Document is a discretionary ER Match & the Period of determination is the Plan Year.  I provided the client with a Match Calculation using Plan year compensation (not 1/2 year) and they do not feel they should have to pay the true-up. Is there anyway around this? I don't think there is because the document indicates plan year compensation not "per pay or 1/2 year compensation, etc.".

[MWeddell]

Welcome, lisan1025.

I don't see anyway around it.  Clearly it's too late to amend the plan document for what happens in the plan year ended 9/30/2019.  One has to follow the written plan document.

[Luke Bailey]

Would really need to see the documents. Not just plan document, but any resolution or communications regarding the match instituted 4/1/2019. Also, when you say they started match, do you mean they made the contributions, or just told people they'd match starting 4/1/19? Obviously, if it's discretionary they could just cut the rate in half. Unless they have really high turnover, should be about the same for most employees. But if they are locked in by prior communications and contributions that of course probably would not work.