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Showing results for tags 'cash balance allocation'.
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I have a client that has a cash balance plan. In May of 2013, he froze his benefit because he did not think he would be able to afford it. After year-end. he realized he could afford it. If we amend the plan to unfreeze his benefit and reinstate the benefit he was getting in prior years, is that considered discriminitory since we are not increasing the NHCE benefits in the amendment (the NHCE beneft was NOT frozen in May)? If tested with the plan, it passes, but if just the amendment was tested, it clearly would not pass since we are giving an HCE an allocation with no NHCE allocation. Are all amendments after year-end considered corrective amendments?