In another recent Revenue Procedure (Rev. Proc. 2019-19), the Employee Plans Compliance Resolution System (“EPCRS”) program was expanded to permit the correction of certain additional failures through the Self-Correction Program (“SCP”). Before this new ruling, the ability to use SCP was more limited The expanded EPCRS provides the following:
- Plan sponsors can now self-correct certain loan defaults without having to report the failure as a deemed taxable distribution to the participant. A correction may be made by either reamortizing the outstanding loan balance or making a single catch-up payment.
- In cases where spousal consent is required for a loan, the failure to obtain spousal consent can now be self-corrected by obtaining spousal consent retroactively.
- If an error occurred allowing more loans to a participant than permitted by the plan terms, SCP can be used to adopt a retroactive amendment for the permissible number of loans.
- SCP may be used for the retroactive amendment to a plan for the untimely adoption of compliance amendments.
Operational errors that result in plan participants receiving benefits, rights or features that were in excess of that provided by the plan can also now be corrected through a retroactive amendment. The retroactive amendment must provide the increased benefit, right or feature for all eligible employees, it must not violate any other plan qualification requirement and the correction must “satisfy the corrections principles” of the EPCRS.
KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.
ADVERTISING MATERIAL.
© 2024 Keating Muething & Klekamp PLL. All Rights Reserved
- Partner
John Meisenhelder has extensive experience providing counsel to medium and large size companies (tax-exempt and for-profit) with respect to all employee benefits, executive compensation and privacy matters. John ...
- Partner
Lisa Wintersheimer Michel is the leader of the Employee Benefits & Executive Compensation Group. Her practice primarily involves all aspects of qualified retirement plans, including profit sharing plans, 401(k) plans ...
Topics/Tags
Select- Labor & Employment Law
- Employment Law
- Non-Compete Agreements
- Coronavirus
- Labor Law
- Department of Labor
- Federal Trade Commission
- National Labor Relations Board
- Wage & Hour
- Privacy
- Reasonable Accommodation
- NLRB
- Pregnancy Discrimination
- Workplace Accommodations
- FMLA
- Employee Benefits and Executive Compensation
- Employment Litigation
- Arbitration
- Workplace Violence
- Discrimination
- Religion Discrimination
- Medical Marijuana
- FLSA
- IRS
- Litigation
- Social Media
- Employer Policies
- Americans with Disabilities Act
- Disability Discrimination
- Medical Cannabis Dispensaries
- Retirement
- National Labor Relations Act
- Race Discrimination
- Sexual Orientation Discrimination
- Accommodation
- OSHA
- Whistleblower
- Employer Handbook
- ERISA
- United States Supreme Court
- EEOC
- ADAAA
- ACA
- Affordable Car Act
- Unions
- Title VII
- Employer Rules
- Sexual Harassment
- Technology
- Federal Arbitration Act
- NLRA
- Transgender Issues
- Disability
- 401(k)
- Employment Settlement Agreements
- Sixth Circuit
- Equal Employment Opportunity Commission
- Fair Labor Standards Act
- Paycheck Protection Program
- Benefits
- Class Action Litigation
- Gender Identity Discrimination
- Posting Requirements
- Securities Law
- Disability Law
- E-Discovery
- Evidence
- Preventive Care Benefits
- Health Savings Account
- SECURE Act
- US Department of Labor Employee Benefits Security Administration
- Family and Medical Leave Act
- Environmental Law
- Privacy Laws
- Overtime Pay
- Representative Election Regulations
- Department of Justice
- Healthcare Reform
- Older Workers' Benefit Protection Act (OWBPA)
- Telecommuting
- Affirmative Action
- Compensable Time
- Electronically Stored Information
- Equal Opportunity Clause
- Security Screening
- Supreme Court
- E-Discovery Case Law
- Electronic Data Discovery
- ESI
- Occupational Safety and Health Administration
- Return to Work
- Seniority Rights
- Unemployment Insurance Integrity Act
- American Medical Association
- Attendance Policy
- Classification
- Confidentiality
- Fair Minimum Wage
- Federal Minimum Wage
- Media Policy
- Misclassification
- State Minimum Wage
- Wage Increase
- Disability Leave
- Equal Pay
- Genetic Information Discrimination
- National Origin Discrimination
- Retaliation
- Social Media Content
- Employment Incentives
- HIRE Act
- Social Security Tax
- Taxation
- Antitrust
Recent Posts
- NLRB General Counsel Expands Focus on Non-Compete Agreements and Stay-Or-Pay Agreements
- FTC's Non-Compete Rule Struck Down
- District Court Finds in Favor of FTC, Declines to Issue Injunction
- DOL Increases Compensation Threshold for Exemption Eligibility
- Federal Trade Commission Announces New Rule Invalidating Non-Compete Agreements
- EEOC Announces Final Rule Providing Guidelines under the PWFA
- The Practical Employment Law Podcast: Immediate Termination
- The Practical Employment Law Podcast: Labor & Employment Law Update February 2024
- The Practical Employment Law Podcast: Telephone Game
- The Practical Employment Law Podcast: Labor & Employment Law Update January 2024