About This Lost Earnings Tool
A DOL lost earnings review helps plan officials estimate what a retirement or welfare plan may have missed when money was unavailable for investment. This page is built for planning, internal checks, and documentation. It does not replace the official VFCP calculator or professional advice. Use it when you need a clear worksheet before preparing records.
Why Lost Earnings Matter
Late deposits, incorrect transfers, or delayed repayments can harm participants. The principal is the money that should have been in the plan. Lost earnings estimate the growth that money might have earned. When the money is restored late, added interest may also be needed. If a responsible party earned a measurable profit from the money, restoration of profits may be compared with the lost earnings result.
Advanced Inputs Included
The form accepts principal, loss date, recovery date, final payment date, annual rates, and compounding style. It also includes a profit section. This helps users test daily compounding, monthly compounding, annual compounding, or simple interest. A large correction option lets you apply a separate rate when the calculated lost earnings package exceeds a selected threshold.
Interpreting Results
The output separates principal, lost earnings, interest on lost earnings, restoration of profits, and the greater correction amount. This separation is important because the principal payment is not the same as lost earnings. The final line shows an estimated total plan payment. Keep copies of your inputs, results, and payment proof for review.
Using the Results Carefully
Compare every estimate with your plan records. Check each date twice. Small date errors can change the final number. Use the same rate source for similar entries. For multiple deposits, run each item separately, then combine exported rows in your worksheet. This approach creates a cleaner audit trail. It also makes participant allocation easier when several pay dates are involved.
Good Recordkeeping Practice
Save the CSV file for worksheets. Save the PDF summary for files. Attach payroll records, deposit records, account statements, and any notes explaining chosen rates. Review the applicable program rules before submitting a correction. If the official method gives different numbers, follow the official method. This calculator is designed for transparent estimates, audit logs, review support, not legal conclusions.