In order to be a participant in the plan, an employee does not have to contribute to the Plan, UNLESS his/her job classification is covered by a collective bargaining agreement between the Plan Sponsor and one of the unions that represents some of the participants.

The reason I ask is that our client wants to offer an early retirement window benefit, but Treas. Reg. 1.401(a)(4)-3(B)(2)(iv) states "no employee contributions. The plan must not be a contributory DB plan." Does the fact that some of the participants "contribute" to the plan due to a collective bargaining agreement cause the plan to be a contributory defined benefit plan? I have tried to find a definition of contributory defined benefit plan, but have been unsuccessful.

I would appreciate anyone's guidence.

The regulatory cite is part of the definition of a "safe harbor" plan design of a DB plan. Safe harbor is a concept created so that the plan is not required to prove, by some other means, that it is non-discriminatory. In other words, the safe harbor design requriements ARE the test of non-discriminiation.

See 1.401(a)(4)-3(f) for special rules, including subsection (4) for discussion on Early Ret. windows, and also in 1.401(a)(4)-4(d).

Contributory DB plans are discussed in reg. 1.401(a)(4)-6.

Another help help may be to search this website, or the Message Boards, for references to "Early Retirement Windows".