How to handle employer pension contributions

We know that the OP works at a university so in my opinion he/she is very unlikely to be an HCE (although I suppose it is possible!).

Thanks very much for the input! I can confirm that I am definitely not a HCE based on those criteria

Other views are welcome.

Take all you've learned and the questions you have down to the London US Embassy IRS help desk and ask them what to do. Here is a report of what they advise

http://talk.uk-yankee.com/index.php?topic=81730.msg1094430#msg1094430

I think you'll find that they will give you simple and clear advice. There are a number of possible approaches and interpretations. Some might give you a better financial outcome at the cost of greater complication and those might be better for the US expat who plans to return to the US or for those that are highly compensated.

And if you do go to the Embassy, report back what they say!

I am in a similar situation to you - I have an employer pension that I will be claiming is covered by the treaty, but I also might benefit from including the contributions in my present income (and using excess FTC to pay the tax due) so as to increase my basis in the pension. Would be interesting to know if the IRS folks view that as an option.