FAQ 133: 401a4--What do N/As on the test mean?

Problem: What do the "N/A"s mean on the last page of the 401a4 compliance test?

Solution: In order to pass the a4 General Test, each rate group must pass either the 70% Ratio test (which compares the ratio of the Non-HCE % to the HCE % to see if it is greater than 70%), or the Average Benefits Percentage Test (which tests to see that the Non-HCE Average Rate is greater than 70% of the HCE Average Rate, and that the Ratio is greater than the Midpoint Ratio). Since all rate groups in your plan pass the 70% Ratio test, they are not required to pass the ABPT portion of the test. As a result, the final two ABPT columns on that report are unnecessary, so they are marked as "N/A".