Nondiscrimination testing

[Guest MJ1]

Are union employees (whose participation is pursuant to a CBA) required to be disaggregated for purposes of nondiscrimination testing?

[Tom Poje]

under Code Section 410(b)(3)(A) they are excluded from coverage

under Code Sectiopn 401(a)(4)[nondiscrimination] "there shall be excluded from consideration those employees described in section 410(b)(3)(A).."

[david rigby]

The original Q may make this clarification immaterial. When answering the generic Q about union EEs, don't forget this portion of 410(a)(3)(A):

...if there is evidence that retirement benefits were the subject of good faith bargaining between such employee representatives and such employer or employers...

[PensionPro]

§1.410(b)-6. Excludable employees

(d) Collectively bargained employees--

(1) General rule. A collectively bargained employee is an excludable employee with respect to a plan that benefits solely noncollectively bargained employees. If a plan (within the meaning of §1.410(b)-7(b)) benefits both collectively bargained employees and noncollectively bargained employees for a plan year, §1.410(b)-7©(4) provides that the portion of the plan that benefits the collectively bargained employees is treated as a separate plan from the portion of the plan that benefits the noncollectively bargained employees. Thus, a collectively bargained employee is always an excludable employee with respect to the mandatorily disaggregated portion of any plan that benefits noncollectively bargained employees.