Dif NRA, BRF?

[Guest Partly Cloudy]

If a DB plan and a PS plan are being permissively aggregated for testing and the PS plan has a 59.5 NRA while the DB plan has a 65 and 5 YOP NRA, is that a BRF issue? The PS plan covers everyone but the DB plan excludes a group of NHCE's. Thanks.

[FAPInJax]

I do not believe that simply having different retirement ages for plans creates a BRF feature.

[Belgarath]

I'm not so sure. Under 1.401(a)(4)-9(b)(3)(i), since I believe this would be a benefit commencement date, then you can't test separately. It appears you can only test separately in the DB and the DC for BRF's other than single sum benefit, loan, ancillary benefit, or benefit commencement date.

Any other thoughts on this? I'm by no means supremely confident that I've got it right.

[Guest Partly Cloudy]

I looked this up in the Erisa Outline Book and it didn't make it any clearer to me. When the Code says "benefit commencement date" it would seem that NRD would be part of that but it surprises me that, as yet, nowhere can I find that stated cleary.

Let's say that NRD is a BRF which requires current availibilty testing, in my example, the PS plan covers all NHCE's so 100% of the NHCE's are eligible for their PS account at age 59.5 NRD, the DB 410(b) ratio % is 83%, all DB participants have the same NRD provision of 65 & 5, so since 83% is greater than the 50% Safe Harbor % for this plan, there is no BRF issue regardless, am I correct?

[Blinky the 3-eyed Fish]

Yes.

[AndyH]

Well, well, welcome back to the big yellow guy. I agree, but don't see how this could normally be a problem since in a db/dc combo, it is most often the db that is HCE heavy, and that has the later NRD.

[Blinky the 3-eyed Fish]

The yellow guy has been way too busy. I resorted to going Preston with an odd hour response.