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Average Benefit Test and Rate Group Test


Coleboy1
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We use FT Williams for administration and  it's getting me so confused! Or maybe I'm just getting too old for this s$%t! 

This cross-tested plan has passed the rate group test but not the average benefit test. It also passed the ratio percentage test. Does it still have to pass the average benefits test as well? Are deferrals included in the average benefits test?

Someone have mercy on me!

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If all rate groups pass ratio percentage test (=>70%) then average benefits test in not needed.

If any rate group is under 70% then you need average benefits and deferrals (and match, if applicable) enter the equation.

Don't forget to look at restructuring.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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It's easier for canned software to present all pieces of an if, then, else scenario rather than deliver select results based on logic and relevance.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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