I have a takeover client that currently sponsors a 20% mp plan. The allocation is prorata on compensation. The plan document is a standardized prototype which requires an allocation to any participant credited with 501 hours.As part of the GUST restatement I would like to recommend a change to a ps plan with a tiered or age weighted allocation, but what must be guaranteed to the current participants? Am I stuck with a comp/comp allocation for all of 2002? Or can I allocate comp/comp on pay through the date of adoption,and tiered thereafter? Are there any other alternatives anyone can think of?Thank you.

maybe if you are Merlin the Magician you can get by....
you indicated the current plan provides a cintribution after 501 hours.
It is now 4/11. lets see, that is 101 days
101/7 = 14 weeks
at 40 hours a week you are over 500 hours.
you are going to have to provide some type of benefit under that plan.
I think you can cease that benefit as of some date this year, and then put in a profit sharing, throw in a ps contribution and cross test on an aggregated basis.