Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Client Manager DB/DC

CMC Pension Professionals
(Remote / Glendale CA)

CMC Pension Professionals logo

Retirement Plan Administrator

Fulton Bank / Fulton Financial Advisors
(Remote)

Fulton Bank / Fulton Financial Advisors logo

Retirement Operations Specialist

Fringe Benefit Group
(Remote)

Fringe Benefit Group logo

Member Services Supervisor

DC Retirement Board
(Remote / Washington DC)

DC Retirement Board logo

DB/DC Administrator

Primark Benefits
(Remote / San Mateo CA)

Primark Benefits logo

Conversions Specialist

BlueStar Retirement Services, Inc.
(Remote)

BlueStar Retirement Services, Inc. logo

Manager, Client Relationship Management

Guideline, Inc.
(Remote / Solana Beach CA)

Guideline, Inc. logo

Retirement Plan Account Manager

Aegis Retirement Partners, LLC
(Remote / CT / MA / NH / RI)

Aegis Retirement Partners, LLC logo

Retirement Plan Administrator

Nicholas Pension Consultants
(Remote / Rancho Cordova CA / Corona CA)

Nicholas Pension Consultants logo

Pension Administrator

Actuaries Unlimited, Inc.
(Remote / Los Angeles CA)

Actuaries Unlimited, Inc. logo

Plan Administration Manager

Southern Pension Services
(Remote / Tampa FL)

Southern Pension Services logo

Pension Plan Administrator

DeMars Pension Consulting Services, Inc.
(Overland Park KS / MO / NE / OK)

Retirement Plan Administrator

Retirement Solutions Specialists, LLC
(Remote)

Retirement Solutions Specialists, LLC logo

Trust Accounting/5500 Specialist

Sentinel Benefits & Financial Group
(Remote / Wakefield MA)

Sentinel Benefits & Financial Group logo

Retirement Plan Administrator

Prime Pensions Northwest, LLC
(Remote)

Prime Pensions Northwest, LLC logo

Plan Administrator

BlueStar Retirement Services Inc.
(Remote)

BlueStar Retirement Services Inc. logo

Pension Administrator

American Pension, LLC
(Berkeley Heights NJ)

American Pension, LLC logo

Customer Success Associate

Guideline, Inc.
(Remote / Austin TX / Solana Beach CA / Portland ME / San Mateo CA / CO / FL / GA)

Guideline, Inc. logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

BenefitsLink > Q&A Columns >

Who's the Employer?

Answers are provided by S. Derrin Watson, JD, APM

Differing Provisions In Multiple Employer Plan

(Posted November 14, 2002)

Question 237: Can each participating employer under a multiple employer plan select its own plan provisions for eligibility, contributions, vesting, etc.?

Answer: If the plan document permits it, yes. I anticipate that many multiple employer plans offered by PEOs will offer adopting employers such choices. Some may want safe harbor 401(k) plans; some may want deferral-only 401(k) plans; and others might want an employer match (but not be safe harbor). I see no reason that all three options cannot be offered in a single document.

Recall that all coverage and nondiscrimination testing is done separately for each employer under a multiple employer plan. This includes testing to determine if the benefits, rights and features of the plan are nondiscriminatory. With that, there is no reason other than administrative burdens not to tailor the plan somewhat to the needs of adopting employers.

It is important to realize, however, that for purposes of counting service for eligibility and vesting purposes, all service with all adopting employers is counted. Suppose Tweedledee and Tweedledum jointly sponsor a multiple employer plan. I've worked for Tweedledee since 1998, full-time. At the beginning of 2003, I leave Tweedledee and am immediately hired by Tweedledum. The instant I am on the payroll, Tweedledum must recognize my five years of service. I am a rehired participant for purposes of Tweedledum's plan. I'm also nearly fully vested.

Multiple employer plans are discussed in Chapter 18 of the new third edition of my book, Who's the Employer.


Important notice:

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.


Copyright 1999-2017 S. Derrin Watson
Related links:

(restricted access)

(restricted access)

© 2022 BenefitsLink.com, Inc.