Participation of "owners" in DB/DC Plan

[mal]

Can anyone provide a reference to an article, etc., discussing

the ability of owners, directors, incorporators, sole proprietors, etc.,

to participate in a multiemployer DB/DC plan?

Some of our plans allow former bargaining unit alums to

participate in a limited fashion, while other prohibit it

altogether.

I need a refresher on the IRS/DOL guidelines.

Thanks

[Guest Keith N]

I don't know if this prior message will help, but it may point you in the right direction message

It started as a discusion about the extension of benefits to former participants, but turned into a discussion of Fiduciary verses Settlor functions. This may also be something you should examine.

[GBurns]

Your post starts off addressing owners, directors etc then it refers to "former bargaining unit alums ".

Bargaining unit members are never usually, if ever, members of the first group that you referred to.

Whose participation are you questioning?

[mal]

I am referring to members of a union who begin

to work as contractors. They will sometimes set

up shop as an LLC, a corporation, a sole proprietorship,

or a partnership. These "alums" will often sign the

collective bargaining agreement and continue to

work with their tools while employing other members

of the union.

[GBurns]

You still have me confused.

Union members signing the CBA???????? Are these the employer bargaining reps or the union bargaining reps, there is no one else other than these and Company officers who are involved with the CBA.

What does it matter if any union employee has a side job or business whether sole prop., LLA, S or C Corp?

How does a currently employed union member become an "alum"? The term "alum" implies a former employee not acurrent employee.

[mal]

Member X works in covered employment for

a contributing contractor. He decides he is

fed up with working for "the man" and

would like to go into business for himself.

He therefore forms a company (LLC, etc.)

and signs the CBA as an employer. Member

X continues to work with his tools, but also

accepts referrals from the hiring hall.

He is an employer, but also a bargaining

unit alum.

My recollection is that the partication rules

are different for this type of person depending

upon the type of entity which he forms.