Participant being paid was not sent the enrollment package because he

[John A]

XYZ, Inc. had an individual that was not able to enroll at the time enrollment meetings were held due to a life threatening problem. This individual was hospitalized and is now coming home. Are there any guidelines on allowing the participant to make up the deferral contributions (other than the catch-up provisions of the document)?

XYZ, Inc. has an individually designed document that allows for catch-up contributions for the Year 2000. Since the catch-up language is in the document, is there any problem with this individual making up pre-tax contributions (this participant was being paid compensation while he was out). Are there any applicable guidelines other than not exceeding the plan and IRS limits?

The document addresses the "misclassification or mistake of fact". ..."If a misclassification or mistake is made concerning the participation of an Employee in the Plan, either by including an ineligible Employee, or excluding an eligible Employee, and if such mistake is not timely discovered and corrected for the Plan Year in which it occurred, upon discovery of such error in a subsequent Plan Year an adjustment to the Employee's Account Balance shall be made." Later in the same section it reads "In the case of the exclusion of an eligible Employee, the Company shall correct such error as soon as practicable by making a Qualified Nonelective Contribution to the Plan on behalf of the Employee that is equal to the Actual Deferral Percentage for the Employee's group(either HCE or NHCE), as applicable, for each Plan Year during which the Employee was omitted from participation in the Plan."

This was a start-up plan (resulting from a terminated DB Plan). The employer did not send the enrollment package to the participant because he was on life support. Once the employer found out that the participant was doing better and was transferred to a rehab center, he mailed the enrollment package to the participant’s wife. Considering the circumstances, does the "excluding an eligible Employee" scenario apply?