Average Benefits % Test calculations

[Guest student_actuary]

I have a question on the calculation of average benefits % for aggregated DB/DC plans. Its a cash balance plan aggregated with 401(k) PS plan. In the calculation of ABP, do we also have to include the deferrals in the DC calculations.

eg my plan has match, profit sharing and now cash balance.

Do I need to include the deferral amount for each emplyoee along with the match, PS and cash balance contributions and then calculate the average benefits percentage. Or is it safe to only count match, PS and cash baalnce contributions and exclude the deferral. Last years calculations by the prior analyst show that he does NOT add in the deferral while calculating the ABP.

Help!

[Mike Preston]

Unless you are running the ABT on a special basis whereby the DB and the DC are completely separate, you MUST include the deferrals.