Nondiscrimination Rules -- Non-Unit Participants

[Guest lvegas]

I know there is a rule that if a cafeteria plan is maintained pusuant to a bona fide colletive bargaining agreement, it is not subject to the 125 discrimination rules. But what if there are non-unit employees of the employer that participate. Are they exempt as well? Or is there some concept of disaggregation (akin to the qualified plan discrimination rules) that would require the non-unit employees to be tested as though they participated in a separate plan?

Thanks.

[Jacmo]

Actually, I don't think any 125 plan is exempt from the A/D rules. I'm not aware of a rule that allows collectively bargained employees to be exempt from testing, etc. If their wages are being reduced pursuant to a salary reduction agreement, then it should be through a 125 plan.

You could have separate plans, or different requirements by job classification, etc. within the same plan.

But you've still got to include all participants and eligibles in the various tests, as far as I know.

[Guest mjb]

J: IRC 125(g) for exempts CB plans from a/d rules of 125. I dont see why there cant be disaggregation since the CB employees are not considered to be part of a discriminatory group.

[J Simmons]

Is disaggregation of the non-CB EEs from the CB EEs, and then testing of the non-CB EEs portion, required? Or does the fact that the cafeteria plan is the result of CB exempt it entirely from non-discrimination, even the non-CB EEs portion? Would if matter if the CBA spelled out that the cafeteria plan had to be for all EEs, not just the CB EEs?