SUMMARY OF CHANGES TO EPCRS
ENACTED BY REV. PROC. 2002-47, IRB 2002-29
(Effective July 22, 2002)
Page 1 of 11
REV. PROC. 2001-17
REV. PROC. 2002-47
Sections 4.01 and 4.02(1) provided that
Qualified Plans, 403(b) Plans, and Simplified
Employee Pensions (“SEPs”) which satisfied
specified eligibility requirements could resolve
certain failures through the Employee Plans
Compliance Resolution System (“EPCRS”).
In addition, section 4.02(2) provided that the
Internal Revenue Service (“Service”) could
decide to extend EPCRS to other
arrangements.
Section 2.02(2) was revised to permit sponsors
of § 457(b) plans to submit requests outside of
the EPCRS.
Section 4.05 provided that, to be eligible for
the Self-Correction Program (“SCP”):
1. The Plan Sponsor or administrator of a plan
must have established practices and
procedures which were reasonably
designed to promote and facilitate overall
compliance with applicable Code
requirements;
2. These established procedures must have
been in place and routinely followed; and
3. An Operational Failure must have occurred
through an oversight or mistake in applying
them, because of an inadequacy in the
procedures, or because the failure related to
Transferred Assets and did not occur after
the end of the second plan year that began
after the corporate merger, acquisition, or
other similar transaction.
Section 4.05 was revised to clarify the third
part of the SCP eligibility rules with respect to
the established practices and procedures
requirement in the case of a failure that relates
to Transferred Assets or to a plan assumed in
connection with a corporate merger,
acquisition, or other similar employer
transaction.
SUMMARY OF CHANGES TO EPCRS
ENACTED BY REV. PROC. 2002-47, IRB 2002-29
(Effective July 22, 2002)
Page 2 of 11
REV. PROC. 2001-17
REV. PROC. 2002-47
Section 5.01(2)(d) defined the term Employer
Eligibility Failure, for Qualified Plans, as “the
adoption of a cash or deferred arrangement . . .
intende