Average Benefits Test

[Guest boberlander]

I'm running the ABT and, in the classification portion, have a Rate Group Ratio EQUAL to the Employer's Plan Ratio Percent (which is the lesser of Plan and Safe/Unsafe Midpoint).

The end result is that Quantech says the test FAILS. It passes the Average Benefits Percentage portion of the test.

Is this correct? If so, do you have any ideas what I am overlooking?

Thanks.

[Tom Poje]

sorry I haven't been able to respond, our system crashed out Monday. when you say

'the end result is that Quantech says the test FAILS' which part is saying the test fails?

I have only had one plan in which the plans ratio percentage was less than the midpoint, and on the individual it said passes.

However, plan wise it did fail.

e.g. suppose I have one hce.

plans ratio percentage was 18%.

obviously the ees ratio percentage is 18% as well.

Lets further say the NHCE concentration % is 80%. resulting in a midpoint of 30%. Therefore, the lesser of the two is 18%.

I think this is a strange scenario in which the individual passes, but plan wise you never really get to the cross testing (401(a)(4)) testing point because you fail 410(B)

At 18% there is no way you pass the 70% test. And since The ratio % is less than the safe harbor and unsafe harbor you fail the average benefits test.

(If it is saying FAIL on the rate group report, it could be a bug in that the system is not looking at the fact it is =. I haven't seen that happen, but anything is possible. You also didn't mention which version you are running...there is a pre svc pack 7 available on the Corbel website that has fixed a few problems that have cropped up (rdiscrim 6/22 is what I am running)

[Guest boberlander]

Thanks. I believe my scenario fits under what you have included in parentheses at the end of your post. That is, the ratios are =.

I'll check what service pack we are on, and if it makes a difference.