Sharon Freilich's Q&A with BenefitsPRO on SECURE 2.0's New Self-Correction Rules

Sharon K. Freilich, chair of Pullman & Comley's Employee Benefits practice, spoke with BenefitsPRO in a comprehensive Q&A covering the Setting Up Every Community Retirement Enhancement (SECURE) 2.0 Act's new self-correction rules, which make it easier for retirement plan sponsors to address errors in order to protect participant benefits.

Sharon explained the previous two mechanisms the Employee Plans Compliance Resolution System (EPCRS) had for handling plan failures or errors, the Voluntary Compliance Program and the Audit Closing Agreement Program, were far more expensive than the new option to self-correct. Sharon details the timeline and limitations of self-correcting, Eligible Inadvertent Failures and participant loan failures. When asked what the first thing plan sponsors should do, Sharon said "They should make the most of the opportunity presented by SECURE 2.0 to begin an internal audit. Take a good look at the plan, review all the documents and the corresponding procedures, and make sure there’s not a disconnect between the two." 

To read the full article, please visit the BenefitsPRO website.