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Satisfying ABT on Allocations and Rate Group Testing on Benefits


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Posted

The plan satisfy Average Benefits Testing on Allocations permitting us to use the lower threshold to pass rate groups.

Rate groups then pass on benefits.

Is it permissible to satisfy ABT on allocation rates and then satisfy rate group testing on benefits?    This is how the question should have been posed initially.

 

Posted

Not that I know of.  Info is kinda sketchy - are these averages of the EBARs or contribution rates? If the latter, how is the overall less than 25%?  Either way, isn't that the ABT?

Ed Snyder

Posted

Gotta have rate groups passing, too.  (Otherwise you'd just stuff all of what makes up that average into one NHCE who's 22 years old and terminated in January with wages of $500)

Posted

For clarification - we're passing ABT on contributions and then passing rate groups on benefits - As long as we can interchange those from test to test, we're good!

  • CLE401kGuy changed the title to Satisfying ABT on Allocations and Rate Group Testing on Benefits
Posted
6 hours ago, Bird said:

I'd suggest not editing an original post to completely re-write it.  It makes the thread, and especially the responses, confusing.

That is the reason for the quote function.

Posted
On 2/25/2021 at 8:01 AM, CLE401kGuy said:

The plan satisfy Average Benefits Testing on Allocations permitting us to use the lower threshold to pass rate groups.

Rate groups then pass on benefits.

Is it permissible to satisfy ABT on allocation rates and then satisfy rate group testing on benefits?    This is how the question should have been posed initially.

 

This is perfectly acceptable.

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