Ho Kuen Ng
Abstract
Cross-tested plans are defined contribution plans that test allocations for nondiscrimination. The test is based on a plan's actuarial equivalent annuity benefits. Cross-tested plans have become popular among small plan sponsors after the release of the nondiscrimination regulations. This paper investigates the pros and cons of cross-testing.
Key words and phrases: pension plan, nondiscrimination, cross-testing, highly compensated employees
Ho Kuen Ng