• Skip to primary navigation
  • Skip to main content

Van Iwaarden Associates

Retirement Planning For Employers

  • Home
  • Public Sector
    • GASB 67/68 Pension Accounting
      • GASB 67/68 FAQs and Resources
      • Fire Relief Associations
    • GASB 74/75 OPEB Accounting
      • GASB 75 & OPEB Expertise
      • GASB 75 & OPEB FAQs
    • Discount Rates, Crossover, Agent Plans
    • Speeches & Articles – Public Plans
  • Private Sector
    • Plan Design
      • Defined Benefit Plans
      • Cash Balance Plans
        • Cash Balance Plan Case Studies
        • Cash Balance Plan FAQs
      • Profit-Sharing Plans
      • 401(k) Plans
      • 403(b) Plans
      • Retiree Medical Benefits
    • Actuarial Services
      • Cross Testing
      • Pension Plans
      • FASB Retiree Medical
    • Speeches & Articles – Private Plans
  • Blog
  • About VIA
    • Our Team
    • Offices
    • Get a Life!

May 7, 2010 By Peter Cullen Leave a Comment

Threat to Cross-Tested Plans

A Congressional proposal has been introduced that would “severely reduce the attractiveness of cross-tested plans” according to the American Society of Pension Professionals & Actuaries.

Cross-tested plans can be used to provide different defined contribution allocations to different groups of employees.  Often cash balance plans are aggregated with a defined contribution plan and cross-tested for nondiscrimination.  Changes to the cross-testing rules could threaten these arrangements, requiring plans to be redesigned or terminated.

Anyone who’d like to to share their opinion of this proposal with their Congress member can email them using a tool ASPPA has provided, or you can find contract information at www.house.gov.

Share this:

  • Tweet

Filed Under: 401(k) plan, Cash balance plans, Defined benefit plans, Defined contribution plans, Private pensions, profit sharing plan

Previous Post: « GASB 45 – What’s the meaning of ARC?
Next Post: Pre-funding OPEB liabilities »

Reader Interactions

You must log in to post a comment.

Copyright © 2023 · Northern Consulting Actuaries, Inc. d/b/a Van Iwaarden Associates. All rights reserved.