Normal Retirement Age DB/DC combo plan

[wifrbr]

A plan is a DB/DC combo plan.  Do they both have to have the same NRA?

 

Right now the DB has 62 and the DC has 65.

 

 

[Larry Starr]

They clearly have to be tested on the same retirement age; in this case I would absolutely change the DC to 62 (what's the downside),

But whether you can have different NRAs (but test on a uniform date) is not someting I am sure of; hopefully someone else who knows for sure can answer as I won't be able to look it up for a day or two.

[figure 8]

They do not have to have the same NRA.

[Tom Poje]

and so, you calculate your DB E-Bar to age 62 using the db assumptions, then you need to convert that to age 65 using the DC rates

so for example if the db was cash balance using a 5% rate, suddenly you use 8.5% for the last 3 years, which almost never helps testing.

[Calavera]

Agree with Tom and Larry. The testing age is 65 (latest of 2 uniform NRAs). Generally, the best way forward is to amend DC plan NRA to 62.