What's difference between "multiemployer" and "multiple employer" plans?

[Guest vantagepension]

Can someone explain to me the difference between a Multiemployer plan and a Multiple employer plan.

I believe that the Multiemployer plan in normally used in collective bargaining situations to cover employees at various employers.

Is a multiple employer plan one in which many employers maybe covered under one plan and trust but are not related in anyway. Can this be done? What are the testing and reporting ramifications?

[E as in ERISA]

Your description is pretty good -- multiemployer is usually collectively bargained and multiple employer is not. However, I would not say that multiple employer are not related in any way. Multiple employer is typically used when the parties are partly related -- but not the 80% that is needed for a controlled group. For most testing purposes, each employer is tested separately. However, if there is a failure of one employer it can potentially taint the whole plan and trust. That is why it is usually used in a situation where the employers are partly related.

[Bill Ecklund]

By definition a multiemployer plan is a plan to which more than one employer is required to contribute and which is maintained pursuant to one or more collective bargaining agreements between one or more unions and employers. A multiple employer plan is all other plans to which more than one employer contributes. For example a health plan sponsored by a trade association for its members, could be a multiple employer plan. Also a plan maintained by a group of controlled corporations could be multiple employer plan.

[E as in ERISA]

Since all employers in a controlled group are considered a single employer, the plan would not be a multiple employer plan. But if related employers don't meet the 80% test and are not technically a controlled group, then the plan would be a multiple employer plan.