Numerous changes were made to the Employee Plans Compliance Resolution System (“EPCRS”), updating it for law changes. EPCRS clarifies that as a general principle employers need to satisfy the plan document requirements and operate the plans in compliance with the documents. Some of the other changes include incorporating the broadening of EPCRS and its self-correction program (“SCP”), defining what is an eligible inadvertent failure, listing failures not eligible for SCP, permitting self-correction of certain Demographic Failures, Employer Eligibility Failures, and Plan Document Failures, self-correction of certain loan failures, requiring a plan sponsor to ensure that a spouse receives the statutory benefits to which the spouse is entitled if there was a failure to obtain spousal consent for a loan and the loan has not been repaid when a distribution is made, and defining when certain self-corrections must be completed. If you have a plan in the midst of corrections, consideration as to how this guidance impacts your corrections may be advisable.
If you have a plan with issues relating to complying with applicable tax laws or following the plan document in operation that requires correction, reviewing the newly issued correction rules will be important to ensure that you are using the latest rules on corrections.
The opinions expressed are those of the author and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For additional assistance please contact Greta E. Cowart or a member of the Employee Benefits & Executive Compensation (EBEC) practice.
Meet Greta
Meet GretaGreta E. Cowart has counseled employers for more than 30 years on best practices in human resources and employee relations related to benefits and executive compensation. In her practice, Greta routinely develops strategies for effective administration of claims and other disputes, including defense of grievances, and in ERISA claim litigation, while also considering applicable labor and employment laws. Greta also provides fiduciary training and review of fiduciary operations to improve the documentation of the fiduciary process.
