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Posted

A few years ago, sponsor amended plan to exclude by name two partners (there are several other partners in the plan).

Now they want to remove that exclusion.

Are there any discrimination issues given the fact that the amendment only affects HCEs?

I wouldn't think so because the HCEs aren't getting special treatment per se.  They've otherwise satisfied the age/service conditions.  It's not like they are being let in early.

I just want to make sure I'm not overlooking anything.

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

Posted

Is this a DC or DB/CB plan? If DB, be careful this is not (or doesn't start) a pattern of amendments of such nature and frequency that in practice creates what IRS might challenge as a discretionary plan and/or potential non-compliant CODA.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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