Cash out of Unused PTO

[Guest Golden Girl]

the plan document defines pay as W-2 less

All fringe benefits, expense reimbursements, deferred compensation, and

welfare benefits are excluded

The company allows active employees to cash out unsused paid time off.

They consider this a fringe benefit and want to exclude from plan pay.

Is this correct?

They also have a program where others can donate PTO to others and they also consider this a fringe benefit and not plan pay to the recipient of the PTO.

I am having a hard time finding guidance. Any comments would be greatly appreciated

[PensionPro]

Check Rev Rulings 2009-31 and 2009-32.