Recently our company acquired a small company in the northwest. As part of the management agreement, we included our pension plan for a few key employees (no one in benefits was involved). In terms of nondiscrimination testing, can we give this benefit to just a few key employees? Given that the entire test is done on about 40,000 employees and this division is only 60 employees, are we headed for trouble? My initial reaction is yes, but I want to be sure.

You can exclude certain groups as long as you will pass all the applicable test in the aggregate. With 40K ee's I don't see how you would have a problem with 60 unless you have problems passing prior to the exclusion.