Disaggregation

[EBDI]

This plan is tested using the prior year method. It passes the ADP test without disaggregating. We have always disaggregated in the past. Can I disaggregate even though it passes without dissagregation? It would result in better results if I disaggregate.

[Tom Poje]

by disaggregation do you mean testing otherwise excludables separately?

if so, yes but for the current year HCEs you have to rerun last years test to get the correct split to compare. it is doubtful this would have any effect on coverage.

the same would hold true if you are talking about permissive aggregation of plans, though you have to test coverage as disaggregation as well and that might be a problem.

[EBDI]

Thanks for the advice Tom. I meant testing otherwise excludables separately.