Limitation on Allocation Rates

[austin3515]

Plan has 3 NHCE's:

1 Is Otherwise excludable and gets only Safe Harbor 3%

1 is a terminated non-highly getting only the gwm

1 is a full-time active NHCE getting enough PS to pass testing.

How do I apply the limitaiton on the number of allocation groups? If 3 NHCE's the limit is 2; if 2 NHCE's, the limit is 1 rate. But should providing the GWM be counted as an allocation rate? Should the Otherwise Excludable participant (whom my document permits disaggregating for testing) be considered an allocation rate?

[Kevin C]

The plan document should have the answer. It was an LRM requirement for prototypes, so the details could be slightly different from plan to plan.

Looking at our prototype base document, it reads as being based on the number of eligible NHCE's in the "Plan". The definition of "Plan" refers to the entire plan with no mention of disaggregation. If this plan was in our prototype, I would say the number of groups is based on 3 NHCE's. But, we restated all of our DC plans using VS documents, so we haven't had to deal with this issue.