Advisory Opinion on Multiple Employer Plan Status

The Advisory Opinion holds that, at least in form, the employer subgroup would form a valid group or association.

Document Excerpt

Assuming that the Consortium’s by-laws and the instruments governing the Plan and trust are adopted as described in this letter, it is the view of the Department that the participating employer members of the Consortium would, at least in form, constitute a bona fide group or association of employers for purposes of ERISA section 3(5), and the Plan would, at least in form, constitute an employee welfare benefit plan that is a multiple employer plan for purposes of Title I of ERISA. Whether the participating employer members of the Consortium exercise control in substance over the Consortium and the Plan and its trust is an inherently factual issue on which the Department will not rule in an advisory opinion.


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