The actual deferral percentage (hereinafter "ADP") for a plan year for participants who are highly compensated employees for the plan year and the prior year's ADP for participants who were nonhighly compensated employees for the prior plan year must satisfy one of the following tests: # The ADP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADP for participants who were nonhighly compensated employees for the prior plan year multiplied by 1.25; or # The ADP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADP for participants who were nonhighly compensated employees for the prior plan year multiplied by 2.0, provided that the ADP for participants who are highly compensated employees does not exceed the ADP for participants who were nonhighly compensated employees in the prior plan year by more than two percentage points.
ADP test. Except as otherwise provided herein, this Subsection applies if the prior year testing method is elected in the Adoption Agreement. The actual deferral percentage"Actual Deferral Percentage" (hereinafter "ADP"ADP) for a Plan Year for Participants who are Highly Compensated Employees (hereinafter "HCEs") for a plan year for participants who are highly compensated employees for the plan yeareach Plan Year and the prior year's ADP for participantsParticipants who were nonhighly compensated employeesNonhighly Compensated Employees (hereinafter "NHCEs") for the prior plan yearPlan Year must satisfy one of the following tests: # The ADP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADP for participants who were nonhighly compensated employees for the prior plan year multiplied by 1.25; or # The ADP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADP for participants who were nonhighly compensated employees for the prior plan year multiplied by 2.0, provided that the ADP for participants who are highly compensated employees does not exceed the ADP for participants who were nonhighly compensated employees in the prior plan year by more than two percentage points.
The actual deferralcontribution percentage (hereinafter "ADP""ACP") for a plan year for participants who are highly compensated employees for the plan year and the prior year's ADPACP for participants who were nonhighly compensated employees for the prior plan year must satisfy one of the following tests: # The ADPACP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADPACP for participants who were nonhighly compensated employees for the prior plan year multiplied by 1.25; or # The ADPACP for a plan year for participants who are highly compensated employees for the plan year shall not exceed the prior year's ADPACP for participants who were nonhighly compensated employees for the prior plan year multiplied by 2.0, provided that the ADPACP for participants who are highly compensated employees does not exceed the ADPACP for participants who were nonhighly compensated employees in the prior plan year by more than two percentage points.
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