Control Group has three plans and wants to consolidate 2 of them

[cpc0506]

Employer X and Employer Y are a controlled group. Employer Y is 100% owned by Employer X.

Plan A and Plan B are sponsored by Employer X. Plan A covers one division of employees and Plan B covers another division of employees.

Plan C is sponsored by Employer Y.

All three plans are currently able to pass coverage on their own and as such are tested separately.

Currently, Employer X wants to merge Plan B with Plan C. Plan year end is September 30, 2014.

What are the pros/cons of merging Plan B into Plan C on 9/30 versus 10/1?

[Jim Chad]

I would try to see if all testing will pass if you do the merger on 9-30? If yes, than that would be my choice.

By the way, are you anywhere near 100 Participants?

[cpc0506]

Plan A has over 200 employees, plan B about 20, and plan C over 200 employees as well.

So, we will need to pass coverage for the 2 plans if we use 9/30 but would need to pass coverage for the originial 3 plans if we merge on 10/1.