A union collectively bargained for an employer contribution on behalf of it 70 ee's employed at Company A.

Multiple questions:

1) Can the union sponsor the plan for that collectively bargained contribution? basically Company A does not want to deal with the plan and part of the agreement was that they were to fund the plan, not sponsor or admin.
2) Can the plan be a SEP? even though it is 70 ee's the ER contirbution is not much.

Yes.


Yes, unless the CBA required that the benefits be held by the ER in a trust. Also, if you have other EEs, not covered by the CBA, might have to be included as well.

Do you think there are any issues in the Union sponsoring the SEP even if Company A has an exisiting 401k?

Does Company A still get to take the decution for the contribution? Company A is going to calculate and cut the bi-weekly check directly to the financial vendor. That is their only involvement they agreed to in the plan.

When you said "other EEs", do you mean from the Union?

I don't see how the union can sponsor the (single employer) plan. A plan must cover 'employees' and the members of the union are not employees of the union. A union can only sponsor a multiemployer plan and this does not appear to be situation. If this is only for this employer, the employer will have to sponsor the plan.