Law Firm CB/DC

[Cloudy]

Classic CB/DC for a law firm:

DC1 - Partner and Staff

DC2 - Associates (no keys)

CB - Everyone (but Associates at $0 pay credit)

We took over the plan so not involved when the design was implemented.

I don't know why the Associates were allowed to participate in the CB plan with a $0 benefit rather than just excluding them as a class.

I can't come up with a reason but I have to ask if I am missing something? Coverage related?

[Lou S.]

I can think of no good thing that can come out of such a design but several potentially expensive ones. But maybe I'm missing something obvious.

[Tom Poje]

coverage is probably tested on a combined basis so that wouldn't matter

wouldn't change minimum participation because they aren't benefiting in the db plan

unless they are leaving open the possibility of changing the formula and actually giving them something...

because there is a gateway minimum it probably won't matter, for top heavy I guess they have to get 5% because they are a participant in both plans.

maybe someone just didn't think about the issue when putting in the plan.

[Cloudy]

That's what I think too, Tom. It was an oversight.