Originally Posted by
ScottGem
I believe that 401K provisions have to be applied equally to all employees. Also, any changes to the plan MUST be communicated to all participants and employees.
Anything else would be a violation of ERISA and the tax regs.
This will have to be researched - I believe that employers can have different arrangements with different employees at different times, particularly if there are employment contracts involved. The fact that one is hired with, say, 25% contribution doesn't mean that three years later that can't be changed to 50% for new employees.
Off to see if I can find something.