Testing reports for clients

[Guest JPAdmin]

Is there some rule of thumb used on sending compliance testing reports to clients? Which reports are recommended? Which would you not send? Thanks!

[Tom Poje]

I think that one is pretty much up to you. I would think if its a 401(k) plan you would want to include the ADP report anyway.

If plan is cross tested, most people can't make heads or tails out of the reports anyway, so those reports probably only confuse people. since we do back office work on cross tested, we generally send the nondiscrim reports because our client has hired us for that specific purpose.

[Guest JPAdmin]

Thanks for the reply. Does Quantech ever give a seminar or explain what all of the options are on some of the testing reports?

I know that most of the reports are basic enough however, I would love to know more detail on what some of the options do to the testing calculations? When some of the these options are selected, should those go the the client as well? Thanks!

[Tom Poje]

Attend one of your user groups meetings /and/or suggest that as a topic.

other than that, the responsibility still falls on your shoulders as well.

options that I can think of:

using 'otherwise excludable' (statutory exclusions) -

if you use for ADP test you must, I repeat MUST use for coverage and vice-versa.

nondiscrim testing -

SSRA as testing age. I would NOT use this option, unless you have a document that specifically calls for it and you have a determination letter. Testing age is supposed to be plans NRA.

group accrual rates - I would only use cautiously. while the regs permit it, the regs also require that it does not significantly favor HCEs. In other words, the way the system currently handles things is weak. you really need to know what you are doing in this area.

impute disparity - no problem, ok to use, but be careful if part of your contribution consists of safe-harbor nonelectives. you can not impute disparity on these. don't ask me how to run these. well, actually, someone else on the Benefits Link board created an excel sheet to handles these, and his spreadsheet appears to be working fine.

safe harbor/unsafe harbor - if plan is top-heavy, you have to run unsafe harbor for purposes of coverage and the values you put on the schedule T. then you have to run safe harbor to see if plan still passes coverage. if it doesn't, you have to run a(4) testing to see if plan passes.

[Guest JPAdmin]

Thanks Tom: I sure appreciate the input. I will suggest the usergroup go over the reports or prepare a handout that explains the options, what they do, and how they do it. If at all possible, I'd love to see the spreadsheet referenced here. Thanks again.

[Tom Poje]

these are my nondiscrimination notes. If I get 'rented' out to talk at a user group I have used these - if Relius gives a talk on nondiscrim, they use the same basic notes with some modifications (they borrowed the original ones)

I have not updated them recently, but the basics are correct.

as for the spreadsheet, please contact

Fred Payne - he is on the Benefits Link.

He wrote the sheet, I think it does a great job - he has it even checking for the gateway - (of course it doesn't do everything)

but I don't feel its within my right to post his spreadsheet.

[Guest JPAdmin]

Fantastic information! Thanks Tom, I sure appreciate the help. What a great set of notes. This really addresses the questions I had! I'll track down the individual you indicated as well. I sure appreciate it!

[Guest Tom Makeever]

JPAdmin:

You might want to check out one of our many Online Training Sessions. These sessions are typically 1 hour in length and focus on very specific topics. You (or as many of your staff as desired) sit in on an Internet conference for the session. You'll see the instructor walk through the system live while listening in via a toll free phone connection. You have the ability to post questions throughout the session either via phone or by a private chat window communicating with the session moderator.

Upcoming topics in your area of interest are:

- Introduction to ADP/ACP Testing

- ADP/ACP Testing

- ADP/ACP Correction Methods

- Top Heavy Plans

For a detailed list of all topics and to see details and descriptions of sessions, please check our web site at:

http://www.corbel.com/training/webevent.asp

Lastly, most sessions are $50 each logon (multiple attendees from one firm is fine if you share a PC/screen) or your firm can purchase an Annual Subscription for $2,000 that allows your entire staff to logon to as many sessions on all systems as desired.

Hope this helps,

Tom Makeever, VP Sales

SunGard Corbel

(800) 326-7235 ext. 1123