Aimpoint Pension
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CMC Pension Professionals
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United Benefit Pensions Inc.
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Retirement Plan Relationship Manager â DB or DC Focus Trinity Pension Consultants
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Primark Benefits
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Hessel & Associates, LLC
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Loren D. Stark Company
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Senior Defined Contribution Account Manager Nova 401(k) Associates
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MGKS
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EPIC RPS
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Retirement, LLC
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Loren D. Stark Company
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Director of Pension Administration Primark Benefits
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401(k) Retirement Plan Administrator Midwest TPA with Remote Workforce
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Jocelyn Pension Consulting
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Hicks Pension Services
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Site Manager / Senior Administrator Nicholas Pension Consultants
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Question 37: The National Association of Professional Employer Organizations (NAPEO) says a Professional Employer Organization (PEO) is a "co-employer" with its customer companies. If a PEO wants to establish a retirement plan and cover these individuals who are "co-employed" by both the PEO and the customer company, does it have to be a multiple-employer plan with the customer company or can it be a single-employer design? In addition, what other issues will need to be addressed with PEOs with regards to retirement plan design? | |
Answer: The real question is whether NAPEO is correct in its characterization. There are many court decisions which indicate that such "co-employer" treatment is highly suspect. See Q&A 34 of this column for a more detailed discussion.
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Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.
The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.
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