New Comp Allocation Language

[Guest]

I'm drafting my first new comparability/cross tested, etc. plan. The employer wishes to allocate a certain % to the HCE group and a lower % to the NHC group.

In the document, does "the Employer shall make Discretionary Non-Elective Contributions on behalf of each group of Active Participants as defined in Section 2 below. Section 2 defines the two groups. Is this sufficient? May the employer also elect to contribute a certain dollar amount rather the a percentage amount to each group under this formula? Thanks.

[Guest]

usually document will define 'classes',

such as

class 1 shall consists of all owners

(and possibly excluding family members of owners)

class 2 shall consist of all other employees.

for purposes of allocation, class 1 shall receive a discretionary amount allocated pro-rata based on compensation.

class 2 shall receive a discretionary allocation based on compensation.

or something similar.

sorry, I gotta run, can't get more specific than that for now...