If the company adding in a new pay code, what procedure or regulation the plan sponsor need to base off to determine if it's pensionable earning

[Sarah73]

If the company adds in a new pay code, what procedure or regulation does the plan sponsor need to base off to determine if it's pensionable earning?

 

Thank you

 

[Effen]

Not sure I understand the question.  Are you asking about using a non-safe harbor definition of compensation?  If so, you need to make sure that definition is not discriminatory, and that your benefit accruals are not discriminatory when tested using a safe harbor definition.   

Check out 1.414(s) 

[CuseFan]

1. Read the plan document to determine the definition of plan compensation. 2. Determine if the type of new compensation/pay code item is included in that definition or excluded, either categorically or specifically. Since this is a new pay code, it's doubtful it is explicitly excluded.

You may need to look up IRC sections or compensation terms to get your answers.