Current Availablity Test - different match for different service level

[John A]

http://benefitslink.com/boards/index.php?showtopic=9253

Okay, I'm confused about how current availability is determined related to different match levels for different years of service. Since age and service conditions may be disregarded for determining current availability for a benefit (such as a match), wouldn't the different matches almost automatically meet current availability?

For example, if you have:

25% for 1-4 years

50% for 5-9 years

100% for 10 or more years,

wouldn't you count anyone eligible for any match as benefiting for current availability purposes, rather than only those with 10 or more years?

Of course, you would still need to meet the effective availability requirement, but my concern here is understanding how to determine current availability in this case, and if I have a misunderstanding about what it means to disregard age and service conditions. So how is the coverage-type nondiscrimination test for current availability applied to the match situation above?

[Tom Poje]

John -

see 1.401(a)(4)-4(B)(2)(ii)

Current availability......

disregrad age and service....with respect to an OPTIONAL FORM of benefit or social security supplemental....

note, that the rule only applies to optional forms of benefits. The match based on service is not an optional form of benefit

[John A]

Tom,

Okay, I'm getting closer to understanding. If the match based on service is not an optional form of benefit, what is it - a right or feature? Okay, I did a little more research - my understanding is that the rate of match would be a feature, correct?

What would an example of an optional form of benefit be? And an optional form of benefit would be lump sum, 10 C&L, etc., correct?

How do I tell whether something is a benefit, a right or a feature? And a benefit is a form of payment to a participant, a right is a particpant's ability to do something - like a right to make salary deferrals, and a feature is what's provided to a participant, like an allocation formula.

Thank you for your help!

[Tom Poje]

how you ever gonna pass the C-1 test?

I generally think of the optional benefit as being an optional type of benefit distribution

e.g. taking an in-service at age 59 1/2

you can disregard the age, so you will pass currently available.