A: Even small calculation errors can create outsized problems over time. If errors are identified, underpayments may require corrective contributions with interest, while overpayments can be difficult—or impossible—to recover. In either case, errors can lead to compliance concerns, audit findings, and frustrated participants.
These issues often stem from complex plan provisions, incomplete or inconsistent data, or incorrect application of formulas. And because many plans have years of amendments and special cases built in, errors aren’t always obvious until a benefit is paid or reviewed.
SBA helps plan sponsors address both sides of the issue: prevention and correction. When errors are discovered, we validate the impacted population, underlying data, and applicable plan provisions, then work through appropriate correction strategies and ensure calculations are accurate going forward. We also help plan sponsors proactively reduce risk by periodically reviewing sample sets of calculations to confirm that logic remains accurate and participant data is contextually consistent. This approach helps identify issues early, when they are easier to resolve and less disruptive.
