Gateway Testing on Relius

[MBCarey]

I just ran my first gateway testing on Relius. Can someone verify for me exactly what the results are telling me. My report says reflectsthe following

Highest HCe Ben 6.50%

1/3 of Highese HC Ben % 2.167

NHCE with Ben % < 2.167 Failed the NHCE Ben % - 0

Test Passed

NHCE Ben % Failing part pof Gateway Test

REquired Min NHCE Ben % - 5.00

NHCE with Ben % < 5.00 - 186

Test Failed

Must pass Min. Allocation Gateway Test or Safe Harbor Minimum Allocation Gateway Tst or both to pass Gateway Test.

Last Line says - PASSED Gateway Test Requirments.

Can someone tell me Did I or Did I Not Pass?

Thanks

[R. Butler]

The results you are providing indicate that you pass the gateway.

The first part tests to see if the lowest allocation rate for any NHCE is at 1/3 of the highest alllocation rate for any HCE. There cannot be any benefitting NHCE with an allocation rate lower than 2.167 to pass the 1/3 test. It appears that you the Plan passes the gateway.

The second part tests to see if all NHCE's receive an allocation of at least 5% of 415 comp. Since you meet the 1/3 test you are not concerned about this test.

[Tom Poje]

can I ask how many ees are in the plan? (just loaded 7.0 (through 7.3)

you indicated the report said

# of NHCE with Ben % < 5.00 - 186

the 186 would be the number of NHCEs. on the one report I looked at, it says 32, which is double the number of NHCEs I have!.

I am just curious if anyone else has the same problem.

[MBCarey]

Tom, all my other reports reflect 159 participants which is the actual number of participants. I just didn't think of questioning where the 186 came from. Not sure what is being counted.

I guess I will call Corbel.

[MBCarey]

Response from Corbel:

If the number you are referring to is at the bottom of the Gateway Test report, and it is stated "NHCE's with Ben % < x.xxx 186", then this is an incorrect number. We have found that this report is incorrectly doubling the number. With the new Gateway regs, the plan must satisfy this test by all benefitting NHCE's receiving the lesser of 1/3 or 5% of the

highest HCE %. What this report is saying is that there are 93 (186/2) NHCE's who need to be bumped up to the minimum percent which is given in order to pass the Gateway Test. The plan will run both scenarios the 1/3 and 5%, if the 1/3 test passes than you should have a message at the bottom

of the report that says the plan passed the Gateway Test.

Guess I will check the numbers..

[Tom Poje]

thanks for the info. I didn't see that on the website as an issue pending to be fixed - that is why I asked.

it doesn't effect the pass/fail results, but of course could be a misleading piece of info

good advice, any time something new is added ---check your numbers!