non-uniform match contribution

Is it permissible for match contributions to be structured in a way so that different groups receive different match?  This is a non-profit and there will not be any HCEs.

The organization would like to give a match 100% match up to 6% of pay for Group A.

For Group B, in year 1 they get 0%; year 2 50% match, and year 3 100% match.  

Is that acceptable?

Thank you

Assuming that your plan document allows this type of flexibility, absolutely fine. I'd suggest that you make sure the employer doesn't have employment agreements with one or more employees that state something other than what is mandated in the plan document - I've seen situations where the plan documents specify one thing, but the employment agreement states something else, and then it's time for ERISA counsel...

Agreed, but also know the minute there is an HCE, the match rate that includes that HCE must satisfy coverage. No problem if the lower rate, but this isn't just a set it and forget it design unless by design no HCE can be covered.

Thank you.  The replies are very helpful.

All comments above are correct and helpful.  One thing I would add is that, as you probably know, the ACP test still applies to any employer contributions even in a plan sponsored by a nonprofit.   Sometimes, advisors or consultants are concerned that the rules for a nonprofit sponsor would be different.  There are many different rules for employee contributions if the plan is a 403(b), but the employer contribution rules are the same.