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Relius users - 410b Coverage is including Terminated Participants with <500 hours as eligible


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Posted

Any other Relius users have this issue? I'm wondering if I have a setting in Plan Specs not marked correctly. 

When I run the 410(b) Coverage test, Relius is including Terminated Participants with <500 hours as eligible for the test. However I know this group of participants is allowed to be excluded from the test. Am I missing something? 

Posted

They can be excluded if they do not benefit by reason of being terminated and having less than 500 hours. If they benefit, or there is not a last day and hours requirement then that exclusion does not apply is my understanding.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

Posted
1 hour ago, msmith said:

I thought the terminated, < 500 hour rule did not apply to the 401(k) portion of the Coverage testing.

401(k) participants are considered benefiting whether they defer or not, so the two of you are saying the same thing.

Posted

OP should call Relius.  Their help, I find, is pretty good.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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