HCE Counts for testing

[Guest enough]

Hello, I found this message board very helpful and intersting. My question is as follows:

We are testing 2006 and in 2005, we had a restructuring that eliminated many of our HCE's. Due to this, there is a large count for people employed in 2005 to compute our Top Paid 20%, since they all left after more than 6 months of service.

When I prepared the look-back list of everyone that received compensation in 2003 and listed it in decending order and apply the 20% limit, 14 of the top 25 (my 20% number) had no service in 2006, but they and the remaining 11 are HCE's by definition.

The question is does this mean that I only use those 11 HCE's for the testing in 2006 (we are on the current year testing method)? Any employee below the 11 that remained in 2006 that earned >90K, was not in the top 20% for 2005.

Note: We have no 5% owners in either year.