Guest Pattie Bowling Posted September 26, 2002 Posted September 26, 2002 We have a situation where a wholly owned subsidiary who maintains their own separate medical, dental, life and disability plans is being told by the parent company that they cannot implement a POP because the parent company offers a section 105 although the section 105 is not available to the subsidiary's employees. Is there any reason, under these circumstances, the subsidiary should refrain from implementing the POP?
E as in ERISA Posted September 27, 2002 Posted September 27, 2002 The parent and subsidiary will become subject to the discrimination requirements of Section 125, with both treated as a single employer. Read Section 125 (g).
GBurns Posted September 28, 2002 Posted September 28, 2002 What says that section 125 is even applicable? The post did not state how or why section 125 was applicable to the parent. If the parent has no section 125 plan in place why would 125(g) prohibit the sub from having one? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
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