Bottom-Up QNEC for a restructured plan?

[Guest Denise Clark]

A restructured plan (less than 21/1 year of service) wants to fund a bottom up QNEC to correct a failed ADP test. However, the lowest paid employees are in the restructured plan and funding a contribution to these employees will not benefit the failed test. Can the employer fund a bottom up QNEC in a restructured plan or must all employees be tested together (with no regard for less than 21/1 year of service) and the bottom up QNEC determined from the results of that test?

[Bob R]

In order to be consistent, if you use the restructuring, the bottom QNEC needs to made to people in the particular group that is failing (i.e., those over age 21/1 YOS). Alternatively, don't use restructuring and rerun the test. I presume you fail by an even wider margin. But, then you can make the QNEC to those under 21/1 YOS.