Union employees

[Guest Pension Girl]

I have a tax exempt sponsor in CA who wants to exclude union employees from the 403b. The broker states the union employees are covered and deferring under a 401k plan, sponsored by the Labor Union, not the employer. Per the final 403b regs, you can exclude employees who are deferring to a 401k plan of the EMPLOYER.

Has anyone heard of a union sponsoring a plan, rather than the employer? Any ideas on how to exclude these employees from a 403b? The broker claims they are W2 employees of the employer. Not sure how a non employer could withhold deferrals.

Anyone familiar with this scenario?

[Laura Harrington]

I have a tax exempt sponsor in CA who wants to exclude union employees from the 403b. The broker states the union employees are covered and deferring under a 401k plan, sponsored by the Labor Union, not the employer. Per the final 403b regs, you can exclude employees who are deferring to a 401k plan of the EMPLOYER.

Has anyone heard of a union sponsoring a plan, rather than the employer? Any ideas on how to exclude these employees from a 403b? The broker claims they are W2 employees of the employer. Not sure how a non employer could withhold deferrals.

Anyone familiar with this scenario?

The labor organization may be the primary plan sponsor of the 401(k) plan, but I'm sure the employer has adopted into the plan.

[mbozek]

I have a tax exempt sponsor in CA who wants to exclude union employees from the 403b. The broker states the union employees are covered and deferring under a 401k plan, sponsored by the Labor Union, not the employer. Per the final 403b regs, you can exclude employees who are deferring to a 401k plan of the EMPLOYER.

Has anyone heard of a union sponsoring a plan, rather than the employer? Any ideas on how to exclude these employees from a 403b? The broker claims they are W2 employees of the employer. Not sure how a non employer could withhold deferrals.

Anyone familiar with this scenario?

The labor organization may be the primary plan sponsor of the 401(k) plan, but I'm sure the employer has adopted into the plan.

If its a multiemployer plan the employer merely agrees to make contributions at the rate agreed to in the collective baragaining agreement with the union but does not adopt the plan.