Jump to content

ADPACP Test Warning


RDY2RTR

Recommended Posts

I am a new Relius user and am unsure about a warning I receive when running the ADP test. I'm using the prior year testing method, and shifting. The warning says:

Warning: The prior year NHCE percentages stored in Plan Specifications differ from the values computed using the prior year data. Shift corrections will be processed on the data computed using the previous plan year. Test(s) affected are:

Year to date ADP, Year to date ACP

Does this mean that there is something wrong in the database and when Relius re-calulates the NHCE rates based on the prior plan year data, the group average does not agree to the rates rolled forward in the plan specs when the new plan year is created OR does it mean that the calculated percentages are different because Relius has shifted contributions resulting in new NHCE rates and there really isn't anything to worry about?

Link to comment
Share on other sites

I haven't used their shift report. every time I try I get a message saying I can't use it because the ADP test failed, but at the ASPPA Conference a few years ago they indicated you could shit after corrections were made (as long as plan passed after corrections were made and plan passed ADP after shifting. of course)

I have seen that message, and since nothing was changed on my prior year plans you surmise might be correct, the system is somehow looking at the prior year results after shifting.

I simply added a line to the report to show what happens reducing the HCE ADP to 4%, the NHCE to 2% and shifting the difference to the ACP test and showing the results.

(Of course I do an eyeball verification that it would be possible - e.g. you can't shift deferrals for someone if they were not eligible to receive a match because of hours or last day rule)

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...