Integrated Allocations

Duration: 60 Min.

Regulations permit most qualified plans to “integrate” or coordinate contributions with the benefits provided by Social Security. It’s also known as “Permitted Disparity,” and in essence, this provides for a limited form of discrimination in that it permits plans to provide higher contributions for higher paid employees to compensate for the fact that the relative value of Social Security decreases as pay increases.  It can be used as a method of allocating contributions or—by “imputing” this disparity—as a non-discrimination testing method. In Relius Administration, “permitted disparity” can be used at the plan level, the source level or with allocation classes.
  • In this session, we will:

    • set up Plan Specs with the needed definitions and limits for integrated allocations
    • define & enter the integration formulas for the plan
    • use source-level integration formulas
    • set up & define integrated formulas with allocation classes
    • process contribution transactions using these formulas
    • demonstrate how a top-heavy minimum allocation is used with an integrated allocation formula
    • examine the appropriate reports

  • Event Details