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10.
Retirement Manager Limits Enforcement
10.1
Proactive Enforcement.
Proactive Enforcement is designed to prevent a
Participating Employee’s contributions in excess of the available monitored IRC
Contribution Limits each Participating Employee is eligible for, from being
deposited in the Participating Employee’s account in the Retirement Plan.
10.1.1
Retirement Manager will use available data to identify the payroll cycle in
which, based upon the data provided by the Employer, an excess is
projected to occur. The Employer will be notified of a projected excess
through the payroll feedback file to the Employer. The Employer directs
VRSCO to reduce and, as needed, stop contributions.
10.1.2
Retirement Manager will inform Participating Employees that RMLM will
calculate IRC Contribution Limits and reduce or stop contributions at the
direction of the Employer (on the Employee Enrollment/Contribution
Change Page). For employees who enroll or make contribution changes
online, an appropriate disclaimer will be included on the on-line page. It
is the Employer’s responsibility to inform Eligible Employees who submit
paper salary reduction agreements to the Employer to enter into
Retirement Manager of RMLM.
10.1.3
The Participating Employee will be notified via email of a contribution
reduction or stoppage. Participating Employee email notification is
dependent on the Employer’s providing a current, valid email address for
the Participating Employee.
10.1.4
Retirement Manager will generate a reduce- or stop-contribution change
prior to the cut-off date of the first payroll an excess over a monitored IRC
Contribution Limit is projected to occur.
10.1.5 If payroll dates have been entered in Retirement Manager by the Employer
for the subsequent calendar year, Retirement Manager will generate a start
contribution change for all Participating Employees who had their
contributions stopped in the prior year. Start changes will not generate for
unpopulated payroll dates or if the auto restart function is not selected by
the Employer.
10.1.6
Participating Employees may not override a stop or reduce change in their
contributions, but may override an automatic start change. The Employer
can override all contribution changes. Thus, the Employer can elect to
disregard a stop or reduce change, such as in a situation where the
Employer obtains new information supporting the contribution amount.
10.1.7 Participating Employee-generated contribution changes will supersede
automatic start contribution changes.
10.2
Reactive Enforcement.
Reactive Enforcement is designed to address
contributions that exceed applicable limits due to remittance of an excess
contribution by Employer.
10.2.1
Once the Employer determines that excess contributions were remitted to
Retirement Manager, all Employer corrective activity for contributions not
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