cash balance plan and relius

[HarleyBabe]

I'm having an issue with the EBAR for an HCE from the 2008 year to the 2009 year. This particular person was at the comp cap for 08 and 09, made the same amount of deferrals, received the same cash balance contribution except for the difference in the comp. limit, basically the same everything give or take a small amount of money. The EBAR is literally double in 09 and therefore I am failing testing. Several other participants doubled as well and some of their info was almost identical year to year. Has anyone else ran across this with relius? Can anyone give me a hint as to what I might look at? Were there changes that I'm not aware of that would impact the EBAR's the much?

Any help would be greatly appreciated.

Thanks.

[John Feldt ERPA CPC QPA]

Are you using accrued-to-date testing?

Are you using the same testing age in 09 that you used in 08?

[SoCalActuary]

You should also consider the interest rate used for projection of the CB account to retirement. In 2008, the interest rates were different, especially the 30 yr treasury rates. Check your math on this feature and see if you get a more consistent answer. Also, don't forget to recompute the beginning (prior ending) CB plan benefits for testing using the same assumptions you use for the end of year benefit. You should not base the test on the difference between the prior year equivalent annuity and the current year annuity. Instead, you should base the test on the change in the current year annuity because of the current year cash balance hypothetical contribution.