Permitted Disparity Calculation?

[Guest newtobenefits]

I know that even if an employee does not benefit from a plan, he can be included in the average benefits test so long as he is not excludable. But, in figuring out the employer contribution (the numerator) which normally includes, the match, employee elective deferral and pension amounts, can you add in the % that goes to social security (the permitted disparity) even if that employee will not actually receive the benefit because he is being terminated and the company has a "last day requirement"???

[SoCalActuary]

I know that even if an employee does not benefit from a plan, he can be included in the average benefits test so long as he is not excludable. But, in figuring out the employer contribution (the numerator) which normally includes, the match, employee elective deferral and pension amounts, can you add in the % that goes to social security (the permitted disparity) even if that employee will not actually receive the benefit because he is being terminated and the company has a "last day requirement"???

Remember this in the regs: The permitted disparity is limited to 1/2 of the employer rate or benefit level.

So, your employee that gets nothing also gets no imputed disparity.