Plan of Association

[Guest Sieve]

An association of businesses (& I do not know under what Section of the Code it falls) maintains a plan for the employees of its member businesses. The member businesses do not adopt the Plan, but yet their employees can particiapte in the association's plan.

On what basis is this permissible?

[PensionPro]

Is it a multiemployer plan? It is not uncommon to have a trade association sponsor a multiemployer plan and also participate as a contributing employer, even though the association itself is not union.

[Guest Sieve]

It's not a multiemployer plan. All I can think of is that it's a multiple employer plan &, somewhere, there are participation agreements for each employer that I haven't seen. Absent that, I can't understand how else the employees of the association's members can participate.

Anyone know if there's something I might be missing?

[rcline46]

Many associations have plans for members. ABC and NADART come to mind quickly. However, each member must separately adopt the plan, and they are not multiple emplooyer plans. Each one is a separate plan.