Benefit, Rights and Features Test

[Guest 401kbee]

Can anyone explain the benefit, rights and features test? When a plan would need to run this test? What follow up is required on a plan level to correct a failure of the test.

[Guest Pensions in Paradise]

A good reference guide is either the Pension Answer series or The ERISA Outline Book.

[four01kman]

also look at internal revenue code sections 401(a)(4) and 410(b) and the regulations issued under those code sections.

[Tom Poje]

the BRF test is the same test as for coverage, with the excetion that there is no avg ben % test. (well at least for the current availability portion of the test)

The effective availability portion is more or less a facts and circumstances issue.

1.401(a)(4)-4(e)(3) lists a number of 'rights' that might need to be tested.

my guess would be the most common being the rate of match (e.g. 50% match for those with less than 5 years svc, 100% for those with 5 or more years)

had to write a condensed summary of BRF in the Sept-Oct 2005 ASPPA Journal, if you can find it.

might be reprinted in one of the upcoming testing manuals, but I don't remember if that was going to be c-3 or c-4 or exactly which one.