My understanding is that if a 403(b) plan is written to offer ' 'Unviersal Availability', as described in 403(b)(12)(A)(ii), that it is excluded from Title I and need not do annual non-discrimination testing.

If so, and there is no ACP testing, what prevents a school board from picking and choosing select employees to receiving a match or even an elective ER contribution?

BruceM

State law, collective bargaining agreements, salary deferral rules, public scrutiny.

If the plan has employer contributions it is no longer exempt from Title I.

Sounded like a governmental plan to me, but maybe it was a private school.

There's a difference between being tax qualified and subject to Title I of ERISA. If the school system or whoever wants to offer a tax qualified plan to qualify under 403(b), then they have to comply with IRS requirements, regardless of whether Title I applies or not.

I'm speaking of a Govt school district, which I believe is exempt from Title I.

And my question really relates to the IRC, not local policy, although I suspect the latter is what prevents discriminatory ER contributions to a plan with UA.

BruceM