Plan failed 12/31/2002 test and was using prior year nhce %'s. Client wishes to correct using the QNEC method, under the Self-Correction program under EPCRS.

I need some clarification as to who is considered an "eligible non-highly compensated employee" for the QNEC. Can we use the plan's allocationi formula, which is currently a "bottom-up" approach or do we need to give the corrective QNEC to all employees who were eligible to defer in 2002, regardless of the plan's eligibility provisions for QNEC's.?.

I assume you mean the one- to -one correction method under SCP.
Appendix B 2.01(b)(iv)(B)(1) states that the contribution is allocated either as the same percentage of comp or the same dollar amount to each employee.
this would seem to rule out a bottom up QNEC

Wouldn't the QNEC method set forth under Appendix B 2.01(a) also work?

If the plan defines the QNEC method as bottoms up, but the employer wants to correct under EPCRS using the one to one method (comp/comp), does the plan have to be amended from the bottoms up to one to one?