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Top Hat Governmental DB Plan?


Zoraster
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I saw this question asked in this section several pages back but it was never really answered. This would be for a municipality in Florida. If the answer to the first question is "no" then the subsequent questions wouldn't apply. (Also, if I misrepresented the different IRC codes please correct me)

1. Can a governmental defined benefit plan under 414(d) be established to cover a small group of employees (city manager, department directors, maybe mid level management) since it is exempt from ERISA non discrimination rules?

I saw a note where pre-ERISA 401(a)(4) applies under minimum vesting standards that suggests, "either benefits or contributions must not discriminate in favor of employees who are officers, employees, shareholders, persons whose principal duties consist in supervising the work of other employees, or highly compensated employees." I am confused because every time I see this it is in reference to vesting standards and I also see repeatedly that government plans are exempt from non discrimination standards; but this appears to be just that or is it specific to vesting. What am I missing?

2. Could a previously frozen plan be reopened but only for the select group in order to realize economies of scale (board, actuary, investment manager, etc.) or is it better to create a new plan and administration?

3. Are there any rules, state (Florida) or federal that anyone is aware of that requires there be a "board" of trustees instead of just a single independent trustee such as a financial institution?

Wouldn't make sense to have a 5 member board for a plan with potentially 5 participants. Or could you just have the members sit as the board.

Thanks in advance for any feedback or direction on this issue.

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