Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan,and 100 of these employees are considered highly compensated.All of the highly compensated employees are covered by the plan.What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the plan to satisfy the ratio percentage test?

Question

Quizplus · Accepted Answer

The ratio percentage test is satisfied if the percentage of non-highly compensated employees covered by the plan is at least 70% of the percentage of highly compensated employees covered. Since all 100 highly compensated employees are covered (100%), at least 70% of that, which is 70% of the non-highly compensated employees, must be covered. 70% of 900 is 630.

Beta Corporation Has 1,000 Employees Eligible to Participate in the Firm's