Two Questions:
1) Has anybody seen/heard of a DB plan using a df. of compensation for purposes of computing benefits which includes nonqualified deferred compensation? (assuming the plan can pass nondiscrim. testing, I believe the DB plan can use such a df.)
2) Any problem with including deferred comp. in the df of comp. but provide in the plan document that deferred comp. will not be included in any plan yr. in which nondiscrim. testing cannot be passed? Does this violate the definitely determinable benefits requirement of Reg. 1.401-1(B)(1)(i)?
Any thoughts would be appreciated.

I have always thought that such a definition was not valid, but this link includes discussion to the contrary:

http://benefitslink.com/boards/index.php?showtopic=4404

In addition, you may wish to do a search of the message boards for other threads.