Full Version: Comparability Plan Formula
I need the EBAR formula for a comparability plan. In the past I have used the administrative software, however, I have an employer who wants to verify the results. Thanks.
Wants to verify results? Why not just take what the computer spits out and go with it? Of course I am kidding. EVERYONE should and want to verify results, yay!
The formula is:
EBAR = [contribution * [(1 + testing interest rate) ^ (testing age - attained age)] / purchase rate] / compensation
Let me know if you want the permitted disparity formulas and I or someone will come back with those.
The formula is:
EBAR = [contribution * [(1 + testing interest rate) ^ (testing age - attained age)] / purchase rate] / compensation
Let me know if you want the permitted disparity formulas and I or someone will come back with those.
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