CuseFan

As Tom notes, because ABT is what blows up, restructured component plans would need their rate groups to satisfy ratio percentage - so if you have 3 HCEs and 10 NHCEs, you need at least 3 NHCEs with accrual rates higher than your target HCE, and then hopefully the rest should be able to pass on contributions. Also, it might take a targeted contribution (and an 11g amendment) to make that happen. Hindsight of course, but it's always a good idea to look forward and know what HCEs are doing and to communicate to owners that spouse deferrals may need to be limited due to testing and to consult with you to determine what can be supported.

Yes, you have to pay out all benefits first (satisfy liabilities), then the excess (or a portion thereof) may be reverted/transferred to the PSP and placed in an escrow account. To avoid income tax and reversion excise tax, it must be used for the current year and future years' allocations, but you must allocate somewhat equally over a period not longer than 7 years and at least 90% (if I remember correctly) of the active employees of the terminated DB plan must be participants in the PSP. Can 2016 be the first/current year? Maybe, because the DB terminated in 2016 - i don't think IRS would take issue with that - but you would certainly have to start using the excess no later than 2017.