Benefits, Rights & Features Testing

[Guest Tad77]

When testing benefits, rights and features, must the benefit, right or feature being tested satisfy the ratio percentage test or can the lower threshholds of the nondiscriminatory classification test be used?

[Tom Poje]

look at 1.401(a)(4)-4(b)(1)

for current availability if plan satisfies 410(b) WITHOUT REGARDS TO THE AVERAGE BENEFITS PERCENTAGE TEST of 1.410(b)-5.

one of the ways to pass 410(b) is accomplished by using the average benefits test. thus you can use the nondiscrim classification test without having to worry about the avg ben % portion of te test.

[ak2ary]

But Tom, I'm sure you would agree, if your BeRF failed the ratio pct test you would have to pass BOTH parts of the NDCT, the Reasonable Classification Test and the Nondisc. Classification numerical Test

[Tom Poje]

yes, but you do get the free ride on avg ben % test.

[ak2ary]

absolutely