Aggregating DB & DC plan for general test

[Richard Anderson]

We use Quantech for DC administration and Pentabs for DB.

What software is available for aggregating a DB and DC plan for the general test? I could add the EBAR from the DC plan to the normalized benefit from the DB plan in an Excel spreadsheet, but imputing permitted disparity is the problem.

Is there software for doing this?

[Lorraine Dorsa]

I use the same software (QT and Ptbs) and I don't know of any automatic way to aggregate across systems or across plan types.

What we have done in our office is to separately run the plans to compute the EBARs and then to bring the numbers together in Excel.

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[Richard Anderson]

Thanks for your response.

Can the two plans be combined in Excel after imputing permitted disparity in each plan? This would seem to violate the rule on maximum s.s. integration in only one plan. If the plans are combined before imputing permitted disparity, it would seem that you could then impute on the total. Is this correct? Or is the best that can be done, imputing disparity on only one plan and then combining them.

If the two plans can be combined first and then permitted disparity imputed, this is what I have trouble with in Excel. Since covered compensation is different for different aged employees, it would require Excel to look up the values in a table (I think).

I'm not familar enough with Excel to figure out a formula that uses look up tables to impute disparity. Is there an easier way to get Excel to do the imputed disparity calculation?

[This message has been edited by Richard Anderson (edited 09-09-1999).]

[SoCalActuary]

My reply ended up in the wrong message group, on DB & DC deduction limits. So I will try again.

Your choices are:

1.Learn vlookup function in Excel

2.Complain to your vendor

3.Hire your favorite consulting programmer/actuary to help you

4.Pick another vendor (suggestions available)

[John A]

According to IRS Alert Guideline No. 5C: disparity may not be imputed for an employee under more than one plan of the employer.

Reference(s): Reg § 1.401(a)(4)-7(a); and Reg § 1.401(a)(4)-7(d);