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Union & Non-Union Employees


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Posted

I have a client with a 401(k) plan which covers union and non-union employees. In the past, all employees received a pro-rata profit sharing contribution. The union has changed the contribution to 35 cents per hour worked up to 1920 hours. The employer would like to be able to offer their union and non union different rates of contribution. I contacted my document support about how to go about doing this and his recommendation was to keep the current plan for the non-union employees (it's a nonstandardized prototype) and to set up a volume submitter plan for the union employees. Has anybody else set up plans like this? Any information or suggestions would be helpful & appreciated.

Posted

Maybe I should ask this. Is the only real problem with keeping the two plans together the top heavy issue?

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