Noncollectively bargained employees | Collectively bargained employees | Total | |
Highly compensated employees | 100 | 100 | 200 |
Nonhighly compensated employees | 900 | 400 | 1,300 |
Total | 1,000 | 500 | 1,500 |
The employer maintains Plan Y, which benefits 1,100 employees, including all of the noncollectively bargained employees (except for 100 nonhighly compensated employees who are noncollectively bargained employees), and 200 of the collectively bargained employees (including the 100 highly compensated employees who are collectively bargained employees). There are no professional employees covered by the collective bargaining agreement. In accordance with § 1.410(b)-7(c)(4) , the employer must apply the ratio percentage test of § 1.410(b)-2(b)(2) to Plan Y as if the plan were two separate plans, one benefiting the noncollectively bargained employees and the other benefiting the collectively bargained employees.
26 C.F.R. §1.410(b)-6