Safe Harbor New Comparability Plan

[MBCarey]

I have a group that has two young HC's and a mixture of young and old NHCE's. Is there anyway to run a new comparability formula for young HC's. It seems impossible to pass the Non-Discrim. test. Suggestions are appreciated.

[Tom Poje]

well, if the population is small, using top paid group election might 'eliminate' the young HCEs.

people forget about that possibility.

your other choice is to put the people into classes and simply give the young HCEs less.

since this was listed as safe harbor you could exclude hces from safe harbor

or

you might have to do component plan testing (test the HCE youngsters on an allocation basis and the HCE oldsters on an accrual basis - and vice versa with the NHCEs)

not sure of a software that actually does that - I can sort of fake out Relius by using divisions.

[MBCarey]

Tom.

Thanks for your response. My problem is that the 2 young HC's are the only ones and

there are approximately 100 NHCE's who are all over the board.

Marybeth

well, if the population is small, using top paid group election might 'eliminate' the young HCEs.

people forget about that possibility.

your other choice is to put the people into classes and simply give the young HCEs less.

since this was listed as safe harbor you could exclude hces from safe harbor

or

you might have to do component plan testing (test the HCE youngsters on an allocation basis and the HCE oldsters on an accrual basis - and vice versa with the NHCEs)

not sure of a software that actually does that - I can sort of fake out Relius by using divisions.

[Tom Poje]

ah, then you are pretty much stuck with integrated, possibly a points plan but such people wont have a lot of service so that probably wont help.

[Guest Dash02]

Sounds like a poor candidate for cross testing (aka new comparability). In fact, with so many NHCEs, it seems like a poor candidate for a QRP. Nevertheless, assuming that 3% SHNECs are being made, the HCEs might be able to get as much as 9% cross tested allocations if the plan adds a 3rd entry date. This should be considered if a significant number of NHCEs (say, 15 - 20) would otherwise enter the plan on 1/1/2007.