April Benefits Rundown: M&A plan risk, TAFW insights + more

A: Even well-designed calculation programs can produce errors over time. We’ve seen situations where calculation logic was inadvertently affected by unrelated system changes, where unique participant scenarios weren’t fully accounted for, or where an incorrect interpretation of plan provisions was built into the original programming. Because these issues can persist unnoticed for years, plan sponsors benefit from proactively reviewing calculations on a regular basis rather than waiting for a participant complaint, audit, or retirement event to uncover a problem.

When errors are identified, the consequences can be significant. Underpayments may require corrective payments 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.

Issues often stem from outdated plan provisions, incomplete or inconsistent data, or incorrect application of formulas. And because many plans have years of amendments and special cases built in, those errors aren’t always obvious until a benefit is paid or reviewed.

SBA helps plan sponsors address both the causes and consequences of calculation errors. We perform targeted reviews of calculation logic and sample populations to identify issues early, before they become widespread problems. When errors are discovered, we validate the impacted population, underlying data, and applicable plan provisions, then work through correction strategies and help ensure calculations are accurate going forward. Getting it right isn’t just about precision—it’s about avoiding rework, reducing risk, and maintaining participant trust.