Floor offset

[R. Butler]

Don't do much with DB plans; I'm trying to understand this floor offset arrangement. I understand the concept; I don't understand how the following passes muster:

HCE 1 is 47 earns $225,000 and gets DB deposits of $198,249

HCE 2 is 44 earns $40,000 and gets DB deposits of $180,561

All NHCE's get a 5% profit sharing contribution and no benefit under the DB plan because the DC supposedly offsets.

NHCE 1 age 55 earns $25,000

NHCE 2 age 41 earns $30,000

NHCE 3 age 29 earns $55,000

NHCE 4 age 38 earns $78,000

NHCE 5 age 60 earns $35,000

NHCE 6 age 34 earns $30,000

I can't get a ross-tested plan to work all that well with this group; just curious why the floor offset works so well here.

Thanks in advance for any guidance.

[AndyH]

A lot more information would be needed to give a real reply, but I'll say that the 5% appears that it should be closer to 7.5%. Then it might be possible by using an accrued to date methodology and assuming that HCE2 has a higher average compensation (either past history or his current comp is partial and is being annualized). Just observations. Actual service, participation dates along with salary history would be needed to really analyze this.