Exemption from non-discrimination rules?

[Guest newlifeca]

I understand that churches are exempt from non-discrimination rules in who they cover in a 403(B) plan. Are they also exempt from non-discrimination rules in offering a profit-sharing plan? My understanding is that this exemption happens as a by-product of not be subject to ERISA rules.

Are there other non-discrimination rules unique to profit-sharing plans that would control. Thanks for any help!

The reason I am asking is this - our church wants to cover certian full time employees at different contributions percentages - based on employee classification, length of service, etc.

[Guest Tom Geer]

It's not that churches have no rules, it's that non-electing church plans are subject (mostly) to pre-ERISA law and so don't have to comply with most of the rules. There were, still, some discrimination rules. I would be very cautious about adopting a plan design that doesn't comply with normal ERISA rules without having a lawyer (and/or an actuary) take a look at the specifics. However, I suspect that the church is looking at age and/or service-weighting, and my experience is that church plan designs rarley push the rules hard enough to violate them if the "general test" for nonidscrimination is used.