If a plan fails to pay its invoices and in turn the recordkeeper charges plan expenses to the participants accounts (which is clearly stated in the Service Agreement), can an employer come back and "reimburse" the fees to the participant accounts?
If so, would it be dependant on the contribution types allowable under the plan document or would it have to be considered a restorative payment in which I highly doubt the amount of the fees qualify (nor would I necessarily consider this situation a fiduciary breech.)

My past experience indiates that it would be considered an employer contribution and would have to be included as an annual addition for the purposes of 415 Testing. This does not seem to be a restorative payment based on the IRS' strict definition of what constitutes such a payment. The link below may help as well.


http://www.milliman.com/eb/publications/cl..._restorepay.pdf

Yes, I have seen this. However, the document does not allow just a flat contribution of lets say $15 across the board to all participants. It has to be in ratio of comp (as in employer discretionary) so I am trying to find away around that if any because you are right in the fact that it would not qualify as a restorative payment.