Late ADP Failure Correction

We are working with a client where we did not process all of the refunds for the failed ADP test by March 15, 2025. The refunds have been done for all but 2 participants out of a total of 50 required to receive refunds. The 2 participants no longer work for the client and the investment company requires the participant signature on the refund form. They will not sign the form. Do we the client deposit a QNEC for the refund amount of those 2 participants?

ADP refunds are not particpant-driven transactions.  The decision is made by the plan administrator.  The custodian should rely on the representations of the plan administrator and/or trustee in cases like these.

Most of the record keepers I dealt with took direction from me (acting as 3(16) Plan Administrator).  But I don't see why they can't/won't take direction from the Plan Administrator.

Are these brokerage accounts?

No, they are annuities.

Like group annuities?

Just as many BenefitsLink neighbors remind us to Read The Fabulous Document, if a question involves an annuity contract one might read Read The F*** Contract.

Even if a contract is a group annuity contract, a contract might provide fewer or narrower rights than one imagines.