All group retirement plans that are covered by the Employee Retirement Income Security Act ERISA are based on some formulaic process.
This formulaic process is used to ensure against discrimination in the plan. Federal law defines discrimination as a plan that too heavily favors highlight compensated employees. Highly compensated employees are employees who earn over a certain amount in annual income, as of 2013 that amount is $115,000.
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This formulaic process is used to ensure against discrimination in the plan. Federal law defines discrimination as a plan that too heavily favors highlight compensated employees. Highly compensated employees are employees who earn over a certain amount in annual income, as of 2013 that amount is $115,000.