Money purchase plan with mandatory EE contribution

[Guest Kelly Igel]

We have a prospective client who currently has a money purchase plan which requires that the employees contribute a certain percentage of their compensation to the plan in order to receive the money purchase contribution. The employee and employer amounts are "tiered" based on years of service. The employees can either contribute the required amount, or opt not to participate.

Is this a money purchase "thrift" plan?

How is this type of plan tested...?

Is it possible to either: (1) incorporate an additional "voluntary" employee salary deferral component to this type of plan (i.e, is there any such thing as a combined 401(k)/money purchase plan), or if not, then (2) structure a 401(k) plan to contain the similar, tiered employee/employer arrangement, in addition to 401(k) salary deferrals...?

Thanks for your input.