Chapter 1 Plans Covering More than 1 Employer

Question 1

Multiple employers, related – plan type?

Answer 1

Single employer plan

Question 2

Define multiemployer plan

Answer 2

Maintained by collectively bargained agreement with more than one employer

employers not sufficiently related

Individually designed plan document

TAFT HARTLEY act requires joint Board of Trustees with Union and employer representation

Question 3

Multiemployer plan treated as single employer for:

Answer 3

eligibility
vesting
coverage
non-discrimination testing
funding
415
exclusive benefit

Question 4

Define multiple employer plan MEP

Answer 4

Multiple employers
not sufficiently related
non-union

Question 5

MEP definition

Answer 5

Plan with two or more employers where at least two of the participating employers are not related

Question 6

Define Open MEP

Answer 6

Participating employer do not have a common bond

Question 7

MEP treated as a single employer for____

Answer 7

Eligibility
vesting
415 limit
exclusive benefit rule
Form 5500 for non-open/closed MEP

Question 8

MEP treated as separate employers for?

Answer 8

Coverage
nondiscrimination testing
top heavy
Form 5500 for open MEP
Funding
deduction limit

Question 9

Reasons to participate in a MEP

Answer 9

Business relationship
realize economies of scale
hiring and retention of employees
a leasing org may be in a MEP with recipient companies to coordinate benefits and testing

Question 10

Multi employer plans are treated as single employer plan for?

Answer 10

Eligibility, vesting, non-discrimination testing, top heavy, exclusive benefit, 415 limit

Question 11

Are top heavy rules applicable to multi-employer plans?

Answer 11

If multiemployer plan includes a key employee include in required aggregation group

If multiemployer plan has no key employees then can permissively with required aggregation group

Question 12

Leasing Organization leases employees to _____

Answer 12

Recipient Organization

Question 13

Define a leased employee

Answer 13

Formal Agreement between the leasing org and recipient org
Recipient org has primary direction and control over the services rendered
Leased employee works for recipient org for 1yr on a substantially full time basis: 1,500 hrs or 75% of customary hrs for that position
Leasing Org is common law employer of the leased employee

Question 14

Leased employee is treated as an employee of the recipient org for:

Answer 14

eligibility
vesting
coverage
415
non-discrimination testing
top-heavy

Question 15

can a leased employee participate in the recipient’s ESOP

Answer 15

No

Question 16

Leaded employee’s contributions to recipient org’s plan

Answer 16

do not violate exclusive benefit rule
Counted in recipient org’s testing
deductible by recipient org

Question 17

Recipient can avoid covering leased employees if that satisfies which 4 conditions

Answer 17

recipient org has a safe harbor plan:
-MPP
-100% immediate vesting
- immediate eligibility
- at least 10% contribution with non-integrated formula
workforce on recipient org is less than 20% of the leasing org’s NHCEs

Question 18

Define Primary Direction/Control of Recipient org over leased employee

Answer 18

when, where & how services are performed
whether services are performed by a particular person
Whether services are performed in a particular order/sequence
whither the individual is subject to supervision

recipient right to hire/fire the individual is not relevant to primary direction/control