Testing for multiple controlled groups

[Guest Jeff Underwood]

How is testing prepared for multiple "brother-sister" controlled groups? There are three entities involved (K, A and G). K and A are one controlled group and A and G are the other. Are employees from all three entities considered in one test or are separate tests performed for KA and AG?

[Guest Mbrockway]

Controlled groups are tested seperately and together if the employers are maintaining seperate plans.

If all of the employers are in one plan everyone is tested together.

[Guest Jeff Underwood]

I don't understand your answer. Assume there is one plan sponsored by K. My question is whether or not employees from all three entities would be included in coverage testing or if only employees from K and A would be included.

[Guest Mbrockway]

This is taken directly from the ERISA Outline Book.

"If an employer is part of a controlled group of businesses, all members of such group are treated as a single employer for coverage testing."

[Guest Jeff Underwood]

I understand how testing is performed when there is one controlled group involved. The situation I am describing has one of the entities as a member of two different controlled groups. Does that entity perform one test with all employees of the other two entities or does it perform two separate tests?

[Mike Preston]

Different folks have different opinions.

Check out:

http://benefitslink.com/perl/qa.cgi?db=qa_..._employer&id=31

and

http://benefitslink.com/modperl/qa.cgi?db=...employer&id=229