Executives Voluntarily Taking Reduced Contribution

[jukeboy56]

A company is owned 100% by an ESOP. The only contributions are made by the company. The company executives voluntarily decide they want to reduce the executives' compensation contribution percentage to a much lower percentage than is being contributed for other employees. Am I correct in assuming that to do so without a plan amendment to that effect creates a plan failure that needs to be corrected?

[ESOP Guy]

My understanding is that is a failure to operate the plan in accordance of the plan document that needs to fixed if there wasn't a timely amendment.   

[QDROphile]

Also keep in mind that it is an employer decision about what contribution rate applies to different groups of employees, not individual decisions about the applicable rate.  I cannot tell from the words used in the post what was going on or the level or collectivity of decision making.  And usually an amendment or design or contribution rate decision is ultimately a matter for the board of directors, not the “executives.”

[david rigby]

One wonders if there is only one (NOT plural) executive behind this.

[Luke Bailey]

Concur in the above helpful responses. Probably doable, depending on all facts, but need plan amendment.