What is it?
Sometimes clients experience internal payroll issues that cause plan participants to miss deferrals and/or contributions (match, PS, etc.) into the plan. For certain situations, this is cause for a correction to make the participant account whole. Usually these requests are submitted by the RM or by the Plan Services Rep to determine next steps.
Next steps could include immediately starting deferrals for the participant if it's caught early enough.
Next steps could also include a calculation/correction to make the participant account whole.
When this happens, compliance will step in.
What happens when discovered?
1. Calculate how much they participant would have deferred
2. Calculate any contributions from the ER the participant is owed
3. Calculate the gain/loss on the account if the contributions would have been set up correctly
4. Calculate the fee charged to the client to handle the correction
Once all these steps are complete, compliance will submit the info to the RM/PSR to communicate to the client. Once the client approves and advises of how it will be funded, RPS Ops/RPS Daily Ops will be advised.
If a letter is to be mailed and/or a check received, compliance will most likely send an email to RPS Ops
If a debit is to be pulled or a wire received, compliance will most likely email RPS Daily Ops to take action or as a heads up - (this email will be sent to Olivia to add to Freshdesk)
This email from compliance will also be documented, along with attachments, in Freshdesk just in case a participant missed the notice mailed and calls to ask about it.
Freshdesk properties
Ticket Properties
Type: Email
Issue: Plan/Employer
Type of Issue: Eligibility
Contact: Plan
Subject: Pull from email
Example, if email subject is Johnson City Energy Authority 457 Plan Missed Deferral Corrections ticket subject can be Missed Deferral Corrections
Status: Closed
Group: RPS - CSR
Agent: Olivia
Description: Email from compliance (including date/time sent, etc) and attachments. Names of participants (if not already listed in the email)
Reference ticket# 46513