FIS Relius

Coverage Testing with Related Employers
Tuesdays with Derrin and Steve

The consequences of related employer (controlled group, affiliated service group) status are many, and often it can be very difficult to sort between them. But in plan design and testing, perhaps no related employer issue is more fundamental than coverage testing.

This seminar does not address whether a controlled group exists. Rather, it focuses on how the plan tests for coverage once you’ve determined it is part of a controlled group. Derrin Watson, the man who “wrote the book” on controlled groups, walks you through all the issues with clear analysis and detailed examples.

Topics include:

• Service crediting
• Testing mechanics
• HCE status with related employers
• Who’s in the “denominator” of your coverage fraction
• Dealing with excludable employees with plans with varying eligibility requirements
• Permissive plan aggregation
• Average benefit percentage test with differing plans
• Plan design considerations
• Effect of the coverage transition rule
• Multiple plans

Prerequisites: There are no prerequisites or advance preparation for this program. However, the instructor assumes attendees have a basic understanding of coverage testing using the average benefit test and the ratio percentage test.

Level: Intermediate.

Instructional Delivery Method
Group - Internet-Based

Speaker: S. Derrin Watson, J.D., APM
Recipient of ASPPA's 2006 Educator of the Year Award

Objectives: After participating in this program, an attendee should be able to:

1. Properly credit service between related employers
2. Determine nonexcludable employees for coverage testing
3. Apply exclusions for minimum age and service in related employer environments
4. Maximize flexibility in related employer plan design
5. Perform coverage testing in related employer situations
6. Determine the make-up of the coverage fraction where a controlled group maintains more than one plan

Hardware System Requirements: 

• Windows 95, 98, NT 4.0, 2000, XP, Windows 7
• Internet Explorer 4.01 or later, Netscape 4.08 or later, and set Internet browser to allow pop-up windows.
• High-speed Internet connection.
• Pentium 166+ MHz, 128MB RAM or more.
• 1023 x 768 or higher display resolution.
• Soundcard and Speakers.

Software Requirements:

• Silverlight Version 4 is required. Silverlight Version 5 or higher is preferred.
• Silverlight 4 System Requirements Information: http://www.microsoft.com/getsilverlight/locale/en-us/html/installation-win-SL4.html
• Silverlight Downloading:
  • If you do not have Silverlight on your desktop, you should see an automatic pop-up window that will allow you to install it.
  • If you don't see the pop-up window, or if you wish to install this application before you access the recording, you may download it from this location: http://www.microsoft.com/getsilverlight/get-started/install/default.aspx 
• If you have questions or need assistance with accessing/downloading Silverlight, please contact your IT or MIS department.

Program related requests, questions, or concerns may be emailed to: relius.education@sungard.com.