Multiple Employer Plan

[Guest Mbrockway]

Company A and Company B both participate in the same MEP. Company A purchases Company B in Feb 04. Company A added the predecessor employment verbiage in the Adoption Agreement for YOS to count for eligibility.

1. Do we test Company B for nondiscrim and coverage (and file Schedule T) from 01/01 up to the sell date?

2. If yes to the above question, is a 'short plan year' indicated on the Schedule T for this client organization (CO)? If so, is this due 7 months after the merger date?

[GBurns]

I guess I do not understand your post.

You state that Companies A and B "both participate in the same MEP". But, you also refer to Company B as being "this client organization (CO)".

I usually, if not always, see the term "client organization (CO)" used in reference to PEOs.

If this MEP is a PEO MEP, Can Company A or any other CO have verbiage in their Adoption Agreement and eligibility or vesting requirements that the other "co-sponsors" do not have?

[Guest Mbrockway]

Yes, it is a PEO MEP. The verbiage is available to all CO's. Sorry for the confusion.

[WDIK]

I warned you once already. Remember?

[Guest Mbrockway]

You warned me?? Guess I didn't take it as a warning...only an invite to the Sec 125 message board.

[GBurns]

So, it "is available to all CO's", but is it included in all CO's documents? That was the real point of the question, Can 1 CO have something that any other CO does not have?

WDIK

I try not to disappoint. A trademark of good service.

[Guest Mbrockway]

Predecessor Service is available to all CO's as it is an option in their Adoption Agreement. CO A amended their Adoption Agreement and selected the option to count predecessor service for CO B.

1. Do we test Company B for nondiscrim and coverage (and file Schedule T) from 01/01 up to the sell date?

2. If yes to the above question, is a 'short plan year' indicated on the Schedule T for this client organization (CO)? If so, is this due 7 months after the merger date?

[WDIK]

I do appreciate the consistency of your position, and the fact that you have a sense of humor.

[Guest Mbrockway]

OK, so back to my original questions....

1. Do we test CO B for nondiscrim and coverage (and file Schedule T) from 01/01 up to the sell date?

2. If yes to the above question, is a 'short plan year' indicated on the Schedule T for this client organization (CO)? If so, is this due 7 months after the merger date?