Calculating Earnings on Delinquent Contributions (Posted August 15, 2004) Technical Tip 44: The following question and answer are from the DOL/EBSA website: I have determined that participant contributions to the pension plan were delinquent and I want to correct under the program. How do I determine what rate of return to use for calculating earnings on the delinquent contributions? DOL Response: In order to correct under the program, you will need to calculate the lost earnings on the delinquent contributions. For purposes of correction under the program, the rate of return to use is the highest of: The rate of return of the plan for non-participant directed plans or of individual participant accounts; Restoration of profits (as defined under the program); The Internal Revenue Code §6621 rate. How to calculate each of those amounts is demonstrated in the questions and answers below. [Subsequent postings will explain each of these methods.] View all Tips © 2010 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.