Governmental 401(a) - Multiple Allocations & Vesting Schedules

[EBECatty]

An existing governmental 401(a) plan holds matches as well as allows employer nonelective contributions. Is there any problem with describing multiple different allocation formulas with different eligibility and vesting schedules for match, nonelective, or both?

Since it's governmental, we don't need to worry about 410(b), 401(a)(4), or other nondiscrimination testing. Any variations in vesting schedules will be more favorable than the longest permissible vesting schedules and will slightly favor non-HCEs. 

So, for example, people in category A get a match, but no one else does. People in category B will get a nonelective contribution of X% of compensation, with a six-year graded vesting schedule. People in category C will get a nonelective contribution based on years of service with a two-year cliff vesting schedule. And so on. 

Appreciate any thoughts. 

[Luke Bailey]

I don't think there's any problem with this under the Code, EBECatty. Probably not a problem under state law either, but that would need to be reviewed.