One to One QNEC question relating to bargaining/nonbargaining

[fiona1]

A plan fails their ADP test for the 2001 plan year. Refunds are not made by the 12 month period ending 12/31/2002. The plan is doing the one to one correction method.

There are union and non union members. Do just the NHC non bargaining get the QNEC? Or do the NHC bargaining get the QNEC also?

[KJohnson]

I thought you had to run your ADP test separately for the collectively bargained and non-collectively bargained portion of your Plan 1.401(k)-1(g)(11)(ii)(B). Did the bargained section failed the ADP test as well. If not, I would think that from a a correction point of view the QNEC would only be required for the non-bargained.

However, you may have some language in your plan with regard to the allocation of QNECs that you will have to deal with.