Using social security normal retirement age

[Guest dietpepsi]

I see a post from 1999 regarding using social security retirement age as the normal retirement age when doing cross testing.

Do current software packages that do cross testing, either for an average benefit test or a general test, provide the option of using the normal retirement age as defined in the plan or social security retirement age? Whichever provides the best results?

Thanks

[Tom Poje]

I vote two thumbs down on using SSRA.

1. regs require you to use plans normal retirement age for testing. I haven't seen where you are permitted to use SSRA as NRA.

2. there exists the possibility of submitting a document that says testing for nondiscrim will be SSRA. make sure to get the determination letter.

but then the issue arises as to whether you have to check BRF for each SSRA. If you have to do that, chances are you will fail.

for the most part, using SSRA will simply take an E Bar at age 65 and multiply by 1.085 for SSRA 66 and then againg by 1.085 for SSRA 67. given the fact you must provide a minimum gateway anyway I wouldn't push things to the point of using SSRA.

[Guest dietpepsi]

Perfect.

Thanks