In This Presentation:

- Eligibility Errors

- Vesting Errors

- Compensation Errors

- Distribution Errors

- Loan Errors

- Testing Errors

- Other Errors and Things to Consider

Excerpt from Eligibility Errors:

I. Eligibility Errors

1. Review plan’s list of eligible employees against your employment practices. Are there any individuals employed who are not excluded under the plan’s list of excluded employees? For example:

(i) leased employees

(ii) temporary employees

2. Review plan operation with respect to part time employees. If the plan document requires an employee to complete one year of eligibility service, employees who have not completed it may be excluded. However, plans cannot exclude part time employees as a group.

3. Review the plan operation with respect to automatically enrolling employees. Are eligible employees being automatically enrolled?

4. Review the employer operation with respect to classifying employees. If a worker is misclassified as an independent contractor, the employer should review the classification and confirm that the employee is properly classified.

5. Review practices with respect to rehires and counting prior service toward eligibility