If a Plan has no HCE's can the matching formula be different by pay gr

[Hoard1]

If a Plan has no HCE's can the matching formula be different by pay group, division, job title etc....? Thanks

[david rigby]

My understanding is that the dsicrimination rules are related to discrimination in favor of HCEs. If there are none, then the rules don't have any applicability. Also, the ADP and ACP tests deal with the relationship between HCEs and NHCEs.

[Guest]

But it can't be totally discretionary. A defined contribution plan must have a definite *allocation* formula. This requirment applies without regard to the general nondiscrimination rules . . .

[Hoard1]

I think the Plan would have to have the different groups of employeees at least referenced in the plan document (or at least mention that they exsit) so that any contribution could be allocated in accordance with the plan document to the specific group. This would most certainly put you into an individually designed document. Any thoughts?

[david rigby]

Lots of PS plans have given different discretionary contributions based on what division the EE works in, usually somehow related to the actual performance of that division.

[Hoard1]

Yes, I have done those type of Plans. My current question is does such an arrangement require an individually designed document to specify that contributions can be made in different amounts to different specific-

groups of empolyees or is a discretionary difinition sufficient and you use a Board of Directors Resolution to specify the $ amount of match to each group each year.