ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees.

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This is known as the "minimum coverage requirement" and is mandated by law under Section 410(b) of the Internal Revenue Code and Section 271(b) of the Employee Retirement Income Security Act (ERISA). The purpose of this requirement is to prevent discriminatory practices in employee benefit plans.

ERISA and the Tax Code Specify That the Average Value