I posted this under the 401(k) Plan Forum, but I am posting here as well, since it involves a DB plan, too:

If a DB and a DC plan are permissively aggregated, and the DB plan provides a subsidized death benefit to the surviving spouse of an active employee, how can such a benefit be provided for in the DC plan in order to pass testing? Will providing such a benefit under the DC plan result in any limit violations, such as 415?

I'll take a shot at this and given my opinion.

1. A DC plan cannot have a subsized spousal benefit that I can see.

2. Treas. Reg. 1.401(a)(4)-9(b)(3)(ii)-Effective Availability of DB/DC benefits states: The fact that a benefit may be difficult or impossible to to provide in a benefit, right or feature under a plan of a different type is one of the factors taken into account in determining whether effective availability has been met.

3. A subsidzied J&S benefit under the DB plan will have it's value reflected and tested in the Most Valuable Accrual Rate (this is not a b/r/f test, so it doesn't settle the issue but still the subsidy value is being tested so it's not a free pass).

4. I'd probably test "within" the DB plan only for this b/r/f feature (since DC plan doesn't have a subsidy) and even though plans are tested as 1 plan for b/r/f the fact that one plan doesn't have the ability to offer such feature, I think there is value in proving that within the 1 plan that can offer such a feature (DB) the "current available" and "effect availablility" test has been passed.

Given 1-2 above, and If I passed 3 & 4 I'd consider it non-discriminatory.