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Employee Plans Compliance Unit (EPCU) – Current Projects – Failure to Provide a Benefit

Why did I receive an EPCU compliance check letter?

Our Form 5500-series return records show you didn’t provide a plan benefit when it was due.

See line 10f of Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, or line 4l of Form 5500, Annual Return/Report of Employee Benefit Plan, Schedule H (Financial Information) or I (Financial Information-Small Plan).

What is EPCU attempting to determine?

The Employee Plans Compliance Unit (EPCU) wants to understand:

  • Why you didn’t provide the plan benefit when it was due,
  • Whether you’ve corrected the situation, and
  • If our records reflect accurate information.

What actions do I need to take?

Please complete the information request. You may also furnish any other documents or clarifying material that you believe will be helpful for us to review. You should make every effort to be as complete and accurate as possible in your responses and respond by the due date.

If you need additional time, make sure to contact the EPCU representative (located on the letter) to request an extension. Failure to provide the information could result in further action or examination of your plan.

If You Have Questions

Feel free to e-mail us and we will be glad to answer any questions you have about the project and how it relates to your situation. Please include “Failure to Provide a Benefit” in the Subject line of the message. You may also telephone, fax or e-mail the contact person listed on the letter.

Background

Sponsors must operate their plan in accordance with the Internal Revenue Code and other plan qualification requirements. This includes paying all benefits in full when they are due. If a plan fails to provide any benefits when due, the plan may be experiencing compliance problems. Sponsors can correct certain plan errors through the self-correction program (SCP) or voluntary correction program of the Employee Plans Compliance Resolution System (EPCRS).

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Page Last Reviewed or Updated: 19-Feb-2016