Timing of Amendment to change allocation schedule

[dmb]

Calendar year PS plan has 2 allocation groups with the allocation %s written in the doc. Other than initial plan eligibility there is no criteria to receive an allocation of employer contribution. Employer is considering amending allocation schedule to add a third group for 2012. It is my understanding that since there is no last day rule or hours requirement for an allocation it is too late to amend for 2012 as all particpants have already accrued right to current allocation schedule. Can the employer consider the new allocation schedule for compensation earned from the adoption date of the amendment and the current allocation schedule for comp earned prior to the adoption date of the amendment?? Thanks.

[ETA Consulting LLC]

I wouldn't do it. It could be argued that this would create the effect of changing the contributions on amounts already earned up to the date of the amendment.

Good Luck!

[dmb]

I wouldn't do it. It could be argued that this would create the effect of changing the contributions on amounts already earned up to the date of the amendment.

Good Luck!

Do you think the answer would be different if the plan is a 403b plan and not a 401a plan?? Thanks.