Cash Balance Plans with different levels of benefits and backloading issue.

[Guest ymoore]

Assume a cash balance plan with different levels of benefits for various groups, for example the formula for owners is 20% of compensation and the formula for non-owners is 10% of compensation. Further assume the plan passes the general test. Finally, assume that after the plan has been operating for a few years, a non-owner becomes an owner. Are you aware of a citation that would allow the participant to move to the higher benefit level without creating a backloading problem?