Today in ERISA History

April 3, 2008 – The IRS issues Quality Assurance Bulletin FY-2008 No. 1 on Multiemployer Plans: Determination Procedures. It discusses how the IRS treats auxiliary documents, such as collective bargaining agreements, participation agreements, side agreements, and reciprocity agreements, for multiemployer plans who have submitted a determination letter application. It also discusses a variety of issues encountered by multiemployer plans, such as plan language, incorporation by reference, vesting, participation, and nondiscrimination.

Code section 414(f) defines a multiemployer plan as “a plan –

    (A) to which more than one employer is required to contribute,

    (B) which is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and more than one employer, and

    (C) which satisfies such other requirements as the Secretary of Labor may prescribe by regulation.”

Code section 413(b) describes how certain qualification and other rules apply to collectively bargained plans. Those rules are similar, but separate and distinct from Code section 413(c) which applies to multiple employer plans.

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