I have a plan that needs 414s testing. For coverage purposes the plan is run disaggregated (applying the under 21/1 yos tested separately), for 414s, do I need to run the test disaggregated?

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I recently came across an article (here) which suggested that including independent contractors in governmental 457(b) plans could cause those plans to lose their ERISA exemption. The author contends that, while independent contractors are permitted to participate in 457 plans, the ERISA exemption applies to "governmental plans," which are defined in ERISA 3(32) as plans that cover employees. (He acknowledges that plans that cover only independent contractors would be exempt in their own right because they don't cover any employees, but indicates that the governmental employer must maintain separate plans for employees and independent contractors in order for them both to be exempt from ERISA). While I follow his logic, I can't say that I've seen any other support for (or even discussion of) this position. Does anyone else agree or disagree with his position?

Can an employer REQUIRE employees, through payroll deduction, to contribute toward the cost of a self-insured MERP? I have an employer purchasing a high deductible plan from a carrier with a $2500 deductible. They are having a TPA make that plan perform like a $500 deductible to each employee. The 85% of the premium from the carrier is being paid by the employer and 15% is paid by the employee. The employer wants to use a "Premium Equivalent" for the cost of the MERP, and have the employees pay 15% of that as well. Does this sound compliant? I've had 3 large TPAs tell me it is not. Those TPAs don't support self-insured MERP plans either. Would anyone be able to recommend a TPA in Illinois that support's self-insured MERPs?