Gateway Question

My understanding is that when cross-testing, any nonhighly compensated employee must receive the minimum gateway when he/she receives any employer provided benefit or non-elective contribution.

Suppose a company sponsors a cash balance plan and a 401(k) plan which are cross-tested together.  If an NHCE receives no employer contribution in the 401(k) plan (last day requirement) but does get a CB plan pay credit that equates to a 2.5% allocation rate, must he be provided the additional contribution to bring him to the (in this case) minimum  gateway of 7.5% ?

Thanks.

1.401(a)(4)-8 is are requirements for cross testing (sing plan)

1.401(a)(4)-9 are the rules for plan aggregation

so

1.401(a)(4)-9(b)(2)(v)(D)(1) Minimum aggregate gateway A DB/DC satisfies...if each NHCE has an aggregate...

so yes (example 1 is a combo plan, but a DB for HCEs only. because the plan does not satisfy 410b alone the aggregated plans must satisfy the aggregate allocation gateway

 you are allowed to use the average rate of the NHCEs in the DB plan to determine how much the cash balance credit is worth in terms of allocation rate in the DC plan 1.401(a)(4)-9(b)(2)(v)(D)(3)applicable only to those NHCE benefitting in the DB plan

if the cash balance is 2.5% that does not = 2.5% profit sharing allocation