AlbanyConsultant Posted September 14, 2023 Posted September 14, 2023 When running cross testing and need to use the average benefits percentage test, do you have to pass using the same method as you passed 401a4? Ex: pass cross testing only by using the annual method imputing permitted disparity, but one rate group is at 50%. In the ABPT, only the allocation method with permitted disparity is over 70%. Since I have "a" passing method, am I good, or do I have to make the two line up so the same method is used for both tests? Thanks.
CuseFan Posted September 14, 2023 Posted September 14, 2023 I think you're OK and do not need to employ the same method. Conversely, you could determine rate groups based on allocations but do your ABPT using benefits. Paul I and Luke Bailey 2 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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