Enda80
Dec 25 2008, 09:24 AM
If an employer has different plans (the same employer, I must specify); say for example, a 401(k) plan for unassociated-with-the-union employees, a different plan for union employees, and a defined benefit plan (which serves to augment the 401(k) plan), how does that affect the determination of proper coverage?
Effen
Dec 27 2008, 10:11 AM
Any employees subject to collective bargaining can generally be excluded for "coverage" testing and "non-discrimination" testing. The other participants would need to be considered when performing coverage and non-discrimination testing on the various plans.
david rigby
Dec 27 2008, 01:00 PM
To elaborate on Effen's answer, the "collective bargaining" exclusion applies to where pension benefits are the subject of good-faith bargaining. Not exactly the same as "union". See IRC 410(b) and regs.