Volume submitter doc has definition of comp limited to comp while a participant. The match is discretionary. They would like to have the match be the lesser of the salary deferral or x% of full year comp. Since the match is discretionary, can that be done?

I would think not, since chances are the "new" people will be NHCE's, and the HCE's would get a full match but not all of the NHCE's.

Actually the person entering mid year has the potential of a bigger match because it would be based on full year comp not just comp while a participant.

The real question is can the sponsor create a match in any given year that is based on full year comp when the basic definition of comp is only that earned while a participant.

What does the plan say about how the match is allocated?

"the company shall contribute to the Plan on behalf of each Participant who made an elective deferral an amount determined by the board"

Now that I read that again, "an amount determined by the board" doesn't have to refer to compensation.

That's the section covering how the amount of the match is determined. There will be another section about how it is allocated. The allocation method will refer to the Compensation used.

It may also be nice to see improved grammar and/or punctuation.
But most plans struggle with that.

"in an amount determined pursuant to subsection (x)" x referring to the language above. There is no other reference to amount, allocation or compensation.

IF the Plan calls for comp as a participant, then you cannot allocate the match based on full year pay. The fact that the FORMULA is discretionary does NOT affect the determination of the variables involved.

Unless a really really bad attorney drafted the document, the match allocations section will indicate that the match is based on "Compensation."