Nonelective contribution allocated on points

[Medusa]

We have a client whose plan currently has a 401(k) component and a pro-rata nonelective contribution component. They want to add a third component, which would be a point allocation based on compensation and service points.

Because of the demographics, they don't stand much chance of passing the general test. Their intent is to have this component be a non-design based safe harbor (uniform points plan), and to satisfy the average allocation rate test.

The problem is, they won't be able to do this if they count all past service for the purpose of determining points. They only want to include service since the effective date of this component. Does anyone know if there is a way to do his without bouncing it out of safe harbor? Capping the total number of points doesn' t help because it affects a couple of NHCE's as well.

I am also assuming that the points component and the pro-rata component can be treated separately for 401(a)(4). I figure if they could accomplish it in two separate plans, why not in one.