maximum funding % collectively bargained and non collectively bargained plans

[abanky]

a company maintains two plans a db plan for the union and a dc plan for non union.

are either true?

1) the funding as % of compensation are independent of each other because one plan is collectively bargained.

or

2) the ps can still fund up to 25% of comp because the union plan is covered under pbgc.

Am I way off?

[Effen]

1) If no one "benefits" in both the DB and the DC, the combined plan deduction limits of 404(a)(7) don't apply.

2) If the plan is covered by the PBGC, the combined plan deduction limits of 404(a)(7) don't apply.

[david rigby]

I think I agree with Effen, but remember that "benefitting" under 404(a)(7) is not the same as that term is used in most other contexts, such as 401(a)(4).