Coverage Testing and exclusion by name

[Lori Foresz]

Hi,

If a plan passes coverage on the ratio percentage test, can it exclude people by name? I am thinking the answer is yes since the reasonable classification test that requires the classification of employees covered be based on objective business criteria is not a requirement for the plans that can pass on the ratio percentage test.

As a second question. Could a plan exlude a class of employees that contains two of the oldest workers in the company, pass on the ratio test, and still be considered nondiscriminatory? I can't find anything that says a plan can't do this unless somehow age discrimination comes into play and preempts the coverage rules.

Can anyone offer any insight or experience in this regards?

Many thanks

[Blinky the 3-eyed Fish]

You are correct on the first issue and correct on the second that ADEA will preclude you from excluding the oldest workers as a class.