All good points Paul. I didn't think about limiting HCE's but that would work well too. I guess the goal is odd, it's not caring about the HCE's and trying to lock in the NHCE's with a type of handcuff vesting strategy.
Thinking out loud now,
1. QACA Enhanced match 4% on 4%
2. Stated Match – 4% on 4%
3. Discretionary Match – 4% on 4%
2 year Vesting on QACA, 6 year on Stated and Disc.
Can exclude HCE’s so it just benefits those who make less. Can partially include them too.
Employee contributes 4%, receives 12%
Vested for 4% after two years, vested fully with other 8% after 6 years
EX: Employee makes $50,000, Saves $2,000.
Receives $6,000, subject to 2- and 6-year vesting.
2nd work anniversary - $2800
3d $3600
4th $4,400
5th $5,200
6th $6000