What can you do when the wrong contributions were made to employees?
At a manufacturing company, an error was made in the communication of contribution amounts to its insurance company’s record keeper. As a result, the wrong contributions were made to most employees over a number of months. Some received too much, while others received too little. The problem had to be resolved swiftly, in a way that complied with legislative guidelines and minimized consequences to employees.
The Accompass touch
We took the issue off our client’s desk. First, we crunched the data, creating a detailed spreadsheet that itemized every employee, the amounts they’d received, and the amounts that should have been contributed. For the first time, our client could see the impact on individual employees. Next, we developed a strategy to resolve the issue. For employees who had received too much, contributions would be suspended for a period of time; for those who had received too little, we determined the interest rate that should be paid on missed contributions, and confirmed that they had contribution room.
Based on this, a file detailing go-forward contributions was transmitted for the record keeper.
Finally, we created personalized communications that automatically pulled in each employee’s relevant amounts. The letters clearly explained what had happened, what the impact was on their retirement account, and what they could expect to see on future statements as the discrepancy was corrected.
Without requiring substantial amounts of our client’s time and resources, we resolved the issue. Our solution relied heavily on granular analysis of the data and automating processes to simplify communications. What might have been a disastrous situation garnered not a single employee complaint or comment.