An ADP test measures the deferral rates of highly compensated employees against that of non-highly compensated employees to determine a ratio limiting contributions by highly compensated employees. And an ACP test measures key employees’ contributions and/or after-tax contributions against that of salaried employees. To ensure your plan doesn’t favor your highly compensated employees, we can help you fulfill your annual ADP/ACP testing requirements.

Under this provision, the plan’s financials are measured using one of two tests. The Ratio Percentage Test requires the percentage of the employer’s non-highly compensated plan participants to equal at least 70 percent of the percentage of highly compensated employees. The alternate test, the Average Benefit Test, has two parts, both of which must be satisfied. The first part tests whether the plan is in favor of highly compensated employees. The second ensures that the average benefit percentage of non-highly compensated employees equals at least 70 percent of the average benefit of highly compensated employees. Your plan is not qualified unless it benefits a minimum number of employees, and we can help you meet your annual testing requirement to ensure it does.

This annual compliance test requires the combined plan assets of all key employees to stay below 60 percent of the plan’s assets. Your determination date is the last day of the current plan year so it’s important to consider this issue throughout the year to make sure you don’t go over and have to make additional contributions to non-key employees. We can help you monitor your plan for top-heaviness and conduct your annual testing.

Changing rules and IRS scrutiny have an impact on your company’s employee benefit and pension plans. We have the experience to understand what’s needed to streamline the process and ensure compliance.

Plan development, record keeping and administration, IRS and DOL filings all are part of plan administration. PBMares professionals are knowledgeable about all types of employee benefit plans, and can provide the advice and guidance you need from formation to dissolution.

Every pension and group welfare plan that is subject to ERISA needs to file a Form 5500 electronically. This form, which is essentially an annual report showing that the plan is being run and operated correctly, often contains errors. We can file this form for you, making sure it’s completed accurately so you stay in compliance.

As your business changes, you may have to rethink the structure of your company’s employee benefit plans. This may be due to changing laws and regulations or a changing workforce. Or you may be considering a new plan for your company. Whatever the reason you are questioning your plan, our professionals have the experience and expertise to review your unique situation and provide you with the best possible options.

ERISA requires annual audits of plan financial statements by an independent CPA. This requirement is applicable to plans with 100 or more eligible participants at the beginning of the plan year. Preparing for the audit, which covers both financials and operations, is complex. Our team is here to make sure you have the documentation you need to pass the audit.

Part of the role of a professional employee benefit plan advisor is estimating how much will be in the plan when the employee retires. Given the various tests and limits such plans are subject to, this projection must consider actuarial tables, cost of living projections, and the like. PBMares team has the know-how you need to plan for the retirement you envision.