EBARS/401a4

[Guest chris4013]

My understanding of New Comp testing is that I can "410b" the HCE Ebar rates, or I can take the average EBARS for HCE's, and the NHCE's must be greater than 70% of the HCE's average EBAR.

Is this correct?

I am finding that my 410b'd rate groups fail while the average Ebar is pretty easy to pass.

[Tom Poje]

you have 2 choices

1. each HCE is treated as a single 'plan'. does this plan pass ratio %.

2. each HCE is treated as a single plan. does this plan pass avg ben test.

but the avg ben test is two parts

a. avg ben % test - this will be the same for all hce, it doesn't change because it is the plan as a whole

b. each hce must pass the mid-point. thus, if your ratio % was 60% you fail ratio %, but you pass the midpoint.

your comment seemed to avoid part b