Top Heavy Language For Plan Document

[Stash026]

I got a response from the IRS on a Plan Document restatement saying that I need to include Top Heavy provisions on a Multiemployer DB Plan. I just want to make sure what exactly needs to be put into the document? I'm more familiar with DC Plans, but am picking up work.

Thanks in advance!

[david rigby]

Might depend on what your role is.

See IRC 416.

[Belgarath]

Take a look at the IRS LRM language. This should help you out.

Link: https://www.irs.gov/Retirement-Plans/Listing-of-Required-Modifications-LRMs

[My 2 cents]

Is it not the case that top-heavy minimum benefits and top-heavy vesting are never required for a multiemployer plan, which, by definition, only covers employees covered by collective bargaining agreements under which retirement benefits were the subject of good-faith bargaining? Even if a multiemployer plan is part of the required aggregation group because someone who had been part of the bargaining unit had subsequently become a key employee and remains a participant in the multiemployer plan (say as an inactive participant with a deferred vested benefit), the multiemployer plan does not have to provide anyone with either top-heavy vesting or accruals.

What would be accomplished by inclusion of top-heavy provisions that should explicitly deny top-heavy vesting or accruals to anyone because the plan only collectively-bargained people?