Top Heavy minimum

[Guest Bob Lees]

We have a plan with four classes of employees. Class 1 gets 25% contribution, class 2 gets 20% contribution, class 3 gets 15% and class 4 gets 5%. The plan is top heavy and has last day and 1000 hour requirement. We have an employee in class 3 that worked 900 hours, so we need to give them top heavy minimum. If we give them 3% we fail the gateway. Do we need to give this employee 5% or because she is in class 3 a 15% contribution?

thanks.

[Tom Poje]

Bob:

my understanding would be the ee would get 5%. they fail the accrual requirement to get the full 15%, but since they are benefitting, they must be bumped up to the gateway minimum rather than the top heavy minimum.