Kind of a 2 part question here ----

I know there has been a lot of discussion on this board on how to test employees with no compensation. I think the general consensus is that you would not include them on ADP/ACP because they were not able to defer due to no compensation.

What are your thoughts on how you test an employee with no compensation in coverage / Ratio Percentage? They're an active employee who can't be excluded in minimum age/service, bargaining employee, etc. My thoughts are that they'd have to be considered not benefiting on the Ratio Percentage K test. They can't be deemed to benefit because with no compensation, there is no way they'd be able to benefit.

Going a step further, what if the employee with no compensation is on military leave. I thought USERRA indicated that they couldn't be considered not benefiting for coverage - but for the life of me I can't find any reference to that.

Any thoughts?