Failure to implement "negative" election in ACA Plan

Plan has a traditional automatic contribution arrangement (no EACA or QACA).  

Eligible participant states that he signed an election form for 0 deferrals, which plan sponsor did not implement.  Plan sponsor continued to deduct and remit deferrals.

Is there a fix for this?  Can the deferrals be distributed to the participant if there has not been a distributable event?  I’m not seeing this in EPCRS.

3 hours ago, MarZDoates said:

Plan has a traditional automatic contribution arrangement (no EACA or QACA).  

Eligible participant states that he signed an election form for 0 deferrals, which plan sponsor did not implement.  Plan sponsor continued to deduct and remit deferrals.

Is there a fix for this?  Can the deferrals be distributed to the participant if there has not been a distributable event?  I’m not seeing this in EPCRS.

Let's start with giving us all the facts.  The participant says he signed an election; what does the employer say?  Does the employer agree that they screwed up?  If it was screwed up by the employer, how long did this go on?  One would question why the employee did not inform the employer following the first paycheck after the deferral election failed to be implemented. Give us the full story please.

We just heard from the plan sponsor.  They did give him the option to elect out. So it was not their error..  Deferrals started in October, 2019 and ended on when he terminated employment in December, 2019.  I think he is just trying to cause trouble.  He can take a distribution.  It's like $100.  Thanks

23 hours ago, MarZDoates said:

We just heard from the plan sponsor.  They did give him the option to elect out. So it was not their error..  Deferrals started in October, 2019 and ended on when he terminated employment in December, 2019.  I think he is just trying to cause trouble.  He can take a distribution.  It's like $100.  Thanks

Huh? They gave him an election to opt out, so what did he do?  Did he return the form and they neglected to follow it?   Nevertheless, give the timing and the amount, I would have the employer tell him they never received his election of zero and therefore nothing  will be changed.