Multiple Employer Plans

[Belgarath]

This is a question that came up in a discussion. I'm currently operating on nearly zero information, so my apologies for that.

Say you have some sort of association/organization that is tax exempt - say the Boy Scouts or Girl Scouts. Apparently the local troops have the option to participate in the plan "sponsored" by the national organization. From what came up in the discussion, (now relayed to me 4th hand!) the local troop can set up their own private, "outside" DB plan if they prefer to do that instead. I'm assuming that if this is true, the Scout plan must be a "Multiple Employer Plan."

If the troop already has a plan through the Scouts, are there any particular problems that you know of if they want to get out of that one and establish their own separate plan? I'm not sure I see any special problems, (difficulties moving assets, perhaps, for example?) but I thought I'd see if you DB types have any special caveats?

Thanks!

[AndyH]

A multiple employer plan by definition has assets segregated by "plan", so I don't see why a transfer out would create any problems with the possible exception of contractual agreements such as plan administration or asset management.

Just an educated guess - I have not been involved in exactly this situation.

[Belgarath]

Thanks Andy.