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Comparability Plan Formula


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Guest laurasbay
Posted

I need the EBAR formula for a comparability plan. In the past I have used the administrative software, however, I have an employer who wants to verify the results. Thanks. :blink:

Posted

Wants to verify results? Why not just take what the computer spits out and go with it? Of course I am kidding. EVERYONE should and want to verify results, yay!

The formula is:

EBAR = [contribution * [(1 + testing interest rate) ^ (testing age - attained age)] / purchase rate] / compensation

Let me know if you want the permitted disparity formulas and I or someone will come back with those.

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

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