Irrevocable elections

[JJD]

Does anyone whether an employer that has established a plan requiring a one-time irrevocable election as a condition of employment may establish another plan providing for elective deferrals?

If not, I don't understand the point of treating such an election as an election that isn't an elective deferral for 402(g) purposes (at least, in the case of public employers that can't establish 401(k)s).

OTOH, if such a second plan can be established, then why not permit the elective deferrals under the mandatory plan?

Or is that permissible?

TIA,

John

[JJD]

I think I've got it--Labor Regs. 2510.3-2(f):

For the purpose of title I of the Act and this chapter, a program for the purchase of an annuity contract or the establishment of a custodial account described in section 403(b) of the Internal Revenue Code of 1954 (the Code), pursuant to salary reduction agreements or agreements to forego an increase in salary, which meets the requirements of 26 CFR 1.403(b)–1(b)(3) shall not be “established or maintained by an employer” as that phrase is used in the definition of the terms “employee pension benefit plan” and “pension plan” if ...

A plan, but not a plan.

(the fictions we create, to reach the results we want to reach...)

Thanks,

John