Can an employer maintain two compensation plans within a company -
whereby one compensation plan has limits on employer contribution to
the 403B.  For example:  Employee  A is covered under a variable
compensation plan (base salary + commission on revenue. Employee A is
not covered under the companies annual performance review process. 
Employee B is covered under the companies annual performance review
process and is provided base salary merit increase under this plan.
The company contributes to the employees 403B on base salary only. 
Employee A does not have the opportunity to increase their base salary
as they are not covered under the annual review process - Employee B
does.  Therefore Employee B has a process for increased contribution
by the company Employee A does not.  My question is - is this provided
for under Title 29?

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Request for Question Clarification by richard-ga on 14 Aug 2002 08:54 PDT

Section 403(b) plans are tax-sheltered annuity plans for employees of
public schools and certain charities.

Is the employer a public school or charity?

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Clarification of Question by redtail-ga on 14 Aug 2002 14:40 PDT

Company is a not-for-profit.

Thank you.

The complete rules are available on the Department of Labor site, but
due to prose like definition below, I'll leave interpretaion to
somebody else:-)

http://www.dol.gov/dol/allcfr/PWBA/Title_29/Part_2530/toc.htm

(3) Definitions. (i) For purposes of this section, the term 
``multiple employer plan'' shall mean a multiemployer plan as defined
in
section 3(37) of the Act and section 414(f) of the Code or a multiple
employer plan within the meaning of sections 413 (b) and (c) of the
Code
and the regulations issued thereunder. Notwithstanding the preceding 
sentence, a plan maintained solely by members of the same controlled 
group of corporations within the meaning of paragraph (d) of this 
section or by trades or businesses which are under the common control
of
one person or group of persons within the meaning of paragraph (e) of
this section shall not be deemed to be a multiple employer plan for 
purposes of this section, and such plan is required to apply the rules
under this section which are applicable