Defined Benefit Pension Consultant The Ryding Company
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NFL Player Benefit Office
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Manager - Defined Contribution Plans M2B Retirement Consulting LLC
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Senior Actuarial Analyst/ Project Manager Van Iwaarden Associates
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Retirement, LLC
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Nicholas Pension Consultants
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Senior Administrator / Site Manager Nicholas Pension Consultants
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Sentinel Benefits & Financial Group
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Compliance Analyst - 401(k) Administration Ubiquity Retirement + Savings
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Sr. Retirement Plan Administrator Tycor Benefit Administrators, Inc.
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Defined Benefit Plan Consultant Sentinel Benefits & Financial Group
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Senior Retirement Plan Administrator Enhanced Retirement Solutions
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Junior Implementation Specialist - 401(k) Administration Ubiquity Retirement + Savings
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Retirement, LLC
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Sentinel Benefits & Financial Group
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Hessel & Associates, LLC
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United Benefit Pensions Inc.
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Question 63: Please explain co-sponsorship of qualified plans between PEO's (staffing firms) and client companies. How does it work, what are the obstacles, etc.? |
Answer: As more and more companies realize that there are real questions about whether staffing firms employ those on their payroll, they also realize the difficulty of having those firms cover their workers under their qualified plans. Staffing firms are subject to the exclusive benefit rule (as are all other employers), which provides that qualified plans must only benefit employees of the sponsor (and their beneficiaries). If the staffing firm isn't the employer, then it can't sponsor a plan on its own. |
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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