Cornell Company is considering the establishment of a pension plan. The proposed plan has the following features:
Contributions for employees earning less than $100,000 will be based on 3% of salary, while contributions for those earning over $100,000 will be based on 4% of salary.
To reduce employee turnover, company contributions will vest in 10 years.
Employees with more than five years of service will be required to contribute 2% to the pension plan.
Employee contributions will completely vest in one year.
Will the proposed pension plan be deemed a qualified pension plan? Why or why not?