DTH Posted October 1, 2004 Posted October 1, 2004 I have a DB plan that is restuctured into 4 component plans for testing purposes. Each component has a safe harbor design. Each component failed the ratio % test. Each component passed the classification test. Each component failed the average benefit % test; however, if aggregated it passes. Must each component pass the average % test on its own or is it okay that they passed together? If they must pass each on their own, what are my next steps? Rate groups? Thanks.
Guest dsyrett Posted October 2, 2004 Posted October 2, 2004 To my knowledge, the average benefits % test is only applied to the plan as a whole.
AndyH Posted October 3, 2004 Posted October 3, 2004 That is my understanding also, but, out of curiosity, what is the component criteria that make you think that reasonable classification is satisfied?
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