multiemployer or multiple employer

[Guest Sieve]

An association of employers, with membership compirsed of businessed in a metro area in a specific commercial enterprise, used to bargain for a single CBA covering union workers at any of the member organizations. Plan is a PSP/401(k). Now, each of the employers bargains for its own CBA with the union. Does the association continue to maintain a multiemployer plan for these individual employer CBAs covering union workers, or do we now have a multiple employer plan comprised of separate employers adopting the association's plan for just their CBA-covered employees?

I think that ERISA Section 3(37) & IRC Section 414(f) require that this type of an arrangement (effective after the enactment of MPPAA) be a multiemployer plan (not multiple employer). Anyone agree or disagree?

[Bill Ecklund]

An association of employers, with membership compirsed of businessed in a metro area in a specific commercial enterprise, used to bargain for a single CBA covering union workers at any of the member organizations. Plan is a PSP/401(k). Now, each of the employers bargains for its own CBA with the union. Does the association continue to maintain a multiemployer plan for these individual employer CBAs covering union workers, or do we now have a multiple employer plan comprised of separate employers adopting the association's plan for just their CBA-covered employees?

I think that ERISA Section 3(37) & IRC Section 414(f) require that this type of an arrangement (effective after the enactment of MPPAA) be a multiemployer plan (not multiple employer). Anyone agree or disagree?

The fact that the employer association no longer engages in multiemployer bargaining on behalf of its members does not alter the status of the plan. You need to look at the trust agreement. Most likely the employer association is one of the plan sponsors along with the union. The trust agreement will also most likely require the employer association to appoint trustees.

The plan remains as a multiemployer plan. A multiemployer plan is a plan to which more than one employer contributes by reason of a collective bargaining agreement. ERISA Sec. 3(37)(A).