Employers could be allowed to self-correct — and self-report — errors in retirement plan contributions beneath a proposal made Monday.
This system would allow employers and different plan officers to inform the U.S. Division of Labor that they’ve self-corrected sure failures to ship worker wage withholding contributions or participant mortgage repayments to retirement plans in a well timed method, in line with a press release from the company.
Some limits would apply; amongst different issues, companies might solely use this system for misplaced earnings beneath $1,000.
The proposal is a “welcome growth” for employers, stated Avi Bernstein, senior counsel at management-side agency Epstein Becker Inexperienced.
The contribution or reimbursement delays that will be eligible for this system aren’t fully rare, he stated, and infrequently stem from the challenges posed by a particular occasion payroll or processing an merchandise off cycle, he stated.
Employers already should disclose such failings, however the proposal streamlines the method and “reduces the paperwork considerably,” Bernstein stated.
Stakeholders could remark till Jan. 20, 2023. Bernstein stated he views the transfer as a constructive one for the enterprise group; if something, employers — particularly massive ones — could wish to see the $1,000 restrict elevated barely, he stated.