Match in Separate Plan Triggers ERISA?

[Christine Roberts]

Organization that sponsors 403(B) arrangement with no employer involvement establishes separate 401(a) plan for purposes of making "matching" contributions based on deferrals under non-ERISA 403(B) plan.

Does establishment of parallel 401(a) plan constitute "employer involvement" such that the underlying 403(B) arrangement becomes subject to ERISA?

[Carol V. Calhoun]

Well, this is one of those questions which many people have debated, but which has no clear answer. We typically advise our clients that the safest approach is to assume that adding a match will trigger the ERISA requirements.