Does a governmental 401(a) plan require nondiscrimination testing?

[Guest wwc870]

I have a plan administrator of a governmental 401(a) plan insisting that they required to perform Nondiscrimination Testing on their plan. Are their any regulations that require a 401(a) governemental plan to have compliance testing done?

[Carol V. Calhoun]

State and local governmental qualified plans are totally exempt from nondiscrimination testing under Internal Revenue Code sections 401(a)(5)(G) and 410©(2). Other governmental plans (e.g., federal governmental plans and plans of international organizations) are potentially subject to nondiscrimination rules under current law. However, postponed the effective date of those rules for governmental plans, and the pension reform legislation which has now passed the House, and is pending in the Senate, would eliminate the nondiscrimination rules for all governmental plans.

[david rigby]

And as Carol so correctly reminds us, there could be other statutes (at the state or local level) that have relevance to non-discrimination issues.

[Carol V. Calhoun]

Hmm, Pax, guess I failed to remind everyone of that yet again on this thread?

[Guest wwc870]

Thank you very much for your help!!!