Are different levels of contibution based on years of service permissi

[Guest]

We've been retained by a new client to amend their MPPP to reflect a 6% contribution for participants with less than 10 years of service and 8% for those with service 10 years and over. I assume this will require a volume submitter document. If the plan passes rate group testing each year, does anyone see a problem? Does anyone have suggested language? Thanks.

[AndyH]

I don't see this as unusual at all, in fact fairly common. I can't answer the document question, other than that the ones I've seen are volume submitter.

It obviously needs to be general tested. It can be tested on either a contributions basis or benefits basis. The disparity is such that it normally would pass easily. It will satisfy the 2002 "gateway" rules under the recent (proposed) regs on cross tested plans because the contribution level is at least 5% for all NHCEs.

I would word it as you've stated, based upon years of service.