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Is a governmental plan with a non-safe harbor definition of compensation (excludes bonuses) subject to 414(s) non-discrimination testing of said compensation? Thanks.

Can a X-tested plan be designed to provide a last day rule and/or 1000 hour requirement for allocation for some participants and not others? Thanks.

Yes, i am the actuary and yes, I knew that, just for some reason was hemming and hawing a little. Thanks for both responses.

For an active participant who is beyond NRA (which is 65), where the assumed retirement age would otherwise also be 65, can we assume a later retirement age (maybe 3 or 4 years in the future) for only this particular participant if the feeling his he will not retire in the immediate future, rather than go year by year?? I believe this is fine, but just wanted to confirm my thinking and maybe get thoughts on anything I may have not thought about. Thanks in advance.

So my x-testing skills are a little rusty. In a 401k plan, Is it possible for the ebar for the ABPT to be lower than the ebar for only the employer base contribution? Maybe if there is no service requirement for the 041k portion and a year of service requirement for the base portion and the base is allocated on comp from entry date? Maybe for someone who entered during the year? Any help would be appreciated. Thanks.

Calendar Year new comparability profit sharing plan added 401k deferral option effective 10/1/12. Can EBARS for ABPT be calculated in two pieces: One piece based on the employer base allocation based on annual comp and the second piece based on teh 401(k) deferrals based on comp from 10/1/12 to 12/131/12? If not, any help will be appreciated. Thanks.

Thanks. Meant to include in prior post that the partial buyout woud be for current retirees and maybe eligible TVs. Thanks again.

We're more concerned with the period wating on an IRS DL and the possibility of a partial buyout during that period, maybe if purchase rates spike and opportunity is there to payout on a higher interest rate.

If a plan sponsor initiates (either with PBGC or with both IRS and PBGC) the termination of a DB plan, can it purchase annuities or pay lump sums (at least to non-active participants) at any time? Or must it wait until the 60 day window has closed (in the case of PBGC only)or it receives a determination letter? Thanks.

Thanks, that's what i thought, but wasn't positive.

Calendar year plan was frozen 12/31/08. Participant terminates employment 4/30/13. Does participant's compensation earned after the freeze date get considered in the 415 compensation limit? Thanks.

Thanks Tom, that was my thinking but just wondering about the options. Thanks.

Plan has a two part allocation formula. For participants entering plan before 7/1/01, there is a uniform integrated allocation schedule and for participants entering plan on or after 7/1/01 there is a service based allocations schedule (that would satisfy the minimum allocation gateway). Can the two schedules be tested separtately, that is since the integrated formula is uniform, no x-testing necessary, so maybe only the serviced based schedule would be subject to x-testing?? Or am i just wrong and would the allocations need to be tested as a whole? Any guidance/suggestions would be appreciated. Thanks.

A calendar year 2013 plan will have a gain base for the current plan year if the employer elects to apply any of the 1/1/13 PFB to the 2013 funding requirement. The plan also has about $60,000 of COB at 1/1/13. The itch is that if no PFB is applied, the gain base won't be set up because the funded status will be 100% if assets are not reduced by PFB and the funding requirement is about $80,000. If PFB is applied then the funded status drops below 100% and the gain base gets set up and the funding requirement becomes $40,000. Can the employer elect to apply all of the COB plus $1 of PFB so the result is the lower funding requirement? And is there any consequence of electing to apply credit balance in an amount in excess of the funding requirement? Thanks for any and all responses.

With regard to the MAP-21 supplement, how should the supplement be incorporated into the model notice? For example, does it get added to the front, added to the back, or somehow worked into the model notice? Also, should the entries in the supplement under "Minimum Required Contribution" "net" amounts (before reflect any application of a carryover balance or prefunding balance) or should they be "gross" amounts (before application of any carryover balance or prefunding balance)? Thanks in advance, any help is greatly appreciated.

Thanks Tom, that was my recollection from way back, but just wanted a little confirmation. Thanks.again.

Plan failed ADP test, one of the 10 HCEs had some of their salary deferrals returned to pass the ADP test. When performing the ABPT test for the X-testing can i use the corrected salary deferral for that participant or must i use the original deferral amount? Thanks.

Andy, understood that can't purchase annuity under restriction. SoCal, thanks. We are thinking that the 436 restriction takes precedence and then perform the 110% test on the 50% lump sum plus the cost of purchasing the annuity for the balance. But until the plan passes the 110% test, the benefit will be treated as two separate benefits, the draw down monthly benefit of 50% of the restricted lump sum and the monthly benefit from 50% of the 436 restriction. If and when the plan passes the 110% test, the balance of the 50% lump sum will be paid and an annuity will be purchased for the other restricted portion. All that assuming when they pass the 110% test they will also have AFTAP at least 80%. Does that sound reasonable and correct. Thanks again.

I guess my question is which restriction takes precedence? This plan pays lump sums and purchases annuities for monthly benefits. For someone electing a lump sum, do you look at the AFTAP, bifurcate and then perform the 110% test assuming the 50% lump sum and the annuity purchase for the rest of the benefit, or do you perform the 110% test on the whole lump sum then bifurcate?

A plan's AFTAP is less than 80% but more than 60% and therefore subject to 50% restriction on lump sums. An HCE is restricted because the plan fails the 110% test. Which restriciton is applied first? Does the 110% test get performed after bifurcation pursuant to IRC 436 or is the 110% test performed based on the entire lump sum before bifurcation? Thanks.

It's not that, for some reason, the December rates just don't show up for me or anyone else in my office. I was able to find Notice 2013-2. Thanks for the responses.

I did that, for some reason the December rates are not on the spreadsheet. Maybe it has something to do with my network or server or something like that. Thanks.

Teh site does not have the December rates included.

Has the PPA full yield curve (to be used for 2013 calendar year plans) been published yet? It's not on the IRS site. Thanks,

Thanks for the responses. Yes, the motive is saving money.