Percentage Test (BN345)
Run Percentage Test (BN345) to determine whether defined contribution or defined benefit plans satisfy the percentage test, also called the 70 percent test. The report is based on participation on the system date.
For each eligible employee, the report lists: date of birth, hire date, and whether the employee is a plan participant. For employees enrolled in a defined contribution or defined benefit plan, the report also lists: the plan in which the employee is a participant, the benefit start date, and the benefit stop dates.
Processing Effect
The percentage test compares the number of employees who are eligible for the plan with the number of participants. To determine which employees are eligible, the test uses the eligibility requirements of each benefit plan.
The report totals the number of eligible employees and the number of plan participants and calculates the percentage of eligible employees who are participants.