Any Discrimination Problems Here?

[Guest jfreeborn]

Hello, I am very new to discrimination testing, especially in regards to 403(b)s. I wonder if any of you have any insights on whether the following employer match would satisfy discrimination testing. It's a union shop with pay increases based solely on years of service. The plan is for management too, whose pay is significantly higher than the regular employees.

If this would pass based on its status as a 403(b), any problems if this was a 401(k)? Thanks

Length of Employment & Maximum Employer Match

1st to 2nd Anniversary 2%

2nd to 4th Anniversary 3%

4th to 6th Anniversary 4%

6th to 10th Anniversary 5%

10th to 14th Anniversary 6%

After the 15th Anniversary 7%

[rcline46]

Benefits, Rights and Features testing must be done for actual availability. I would bet it fails. Exclude union from testing if their match is negotiated.

[Guest jfreeborn]

Benefits, Rights and Features testing must be done for actual availability. I would bet it fails. Exclude union from testing if their match is negotiated.

Yes, its part of a collective bargaining agreement. But, the management participate too.