Errors occur in the reporting of data to the plan administrator, in the calculation of benefits, and in the actual payment process, according to Walker. One of the most common errors results from the 1,000 hour rule for eligibility. For example, an employer might consider 20 hours of work a week as part-time and, therefore, not benefit eligible. For example, the firm had a situation where a retiree passed away and his son collected the benefit payments for seven years afterwards by keeping the father's checking account open. In Walker's opinion, the vast majority of mistakes that occur are honest mistakes that cannot be regulated or legislated away.
Intentional mistakes are a fiduciary violation which the law already penalizes.
Walker's firm sends benefit statements annually that show the accrued benefit and the projected age 65 benefit. If there were mandated statements, Walker said that by the time regulations were issued, his firm's usable statements would be turned into a lengthy and unreadable document.