ADP / ACP Testing

[Alex Daisy]

A company sposors a Plan and two other related companies have adopted the Plan for the benefit of their eligible employees.

If none of the companies are considered a "Control Group", can I ADP / ACP test each company seperately?

If two of the companies are considered a "Control Group", do I need to ADP / ACP test these companies together?

Thank you!

[QDROphile]

If the particpating employers are not all in a controlled group you need to call a securities lawyer.

[CTipper]

Unless of course the plan document was set up as a multiple employer plan.

Alex, was it?

[QDROphile]

Makes no difference if it was set up as a multiple employer plan. The securities law problem arises because multiple employer plans do not enjoy the exemption from registration that single employer plans have, whether or not the plan expressly recognizes the multiple employer status.

[Alex Daisy]

Yes, the Plan Document was set up as a multiple employer plan.

Unless of course the plan document was set up as a multiple employer plan.

Alex, was it?

[CTipper]

QDROphile -- Huh? What are you talking about? What does registering the plan have to do with a securities lawyer?

Isn't the whole point of a multiple employer (or do I mean multi?) to be able to have companies that aren't in a controlled group be in the same plan?

And, if they're not a controlled group you test them separately, and if they're in a controlled group you test them together?

Christopher

[austin3515]

NEver come across a securities issue before. All the VS documents are clear that a mutiple employer plan could exist. I wonder if the fact that a single trust is maintained makes you feel any better?