Multiple Employer Governmental Plan

[Kelly]

Hello,  I am brand new here and hoping someone has encountered my question before. 

Would the IRS statutes that refer to multiple employer plans take precedence over the plans that are within, Gov't plans? (401(a) plans)

We have two government plans that are operated under one administrator that has multiple employer status. Vesting would be treated as separate for each employer if I refer to gov't statutes only, however, someone is telling me that the under the multiple employer status vesting would be combined between the two employers.  Which should I follow?  Thanks!

Kelly

[Carol V. Calhoun]

Under Code section 413 and 26 CFR 1.413-2(d), all employers in a multiple employer plan are combined for purposes of section 411.  But governmental plans are subject only to the pre-ERISA version of section 411.  And section 413 was added with ERISA.  Thus, standards for an exclusively governmental multiple employer plan should not require that vesting be combined.

[Kelly]

That confirms my thoughts.  Thank you Carol!