U.S Code last checked for updates: Jun 24, 2024
§ 1060.
Multiple employer plans and other special rules
(a)
Plan maintained by more than one employer
Notwithstanding any other provision of this part or part 3, the following provisions of this subsection shall apply to a plan maintained by more than one employer:
(1)
Section 1052 of this title shall be applied as if all employees of each of the employers were employed by a single employer.
(2)
Sections 1053 and 1054 of this title shall be applied as if all such employers constituted a single employer, except that the application of any rules with respect to breaks in service shall be made under regulations prescribed by the Secretary.
(3)
The minimum funding standard provided by section 1082 of this title shall be determined as if all participants in the plan were employed by a single employer.
(b)
Maintenance of plan of predecessor employer
For purposes of this part and part 3—
(1)
in any case in which the employer maintains a plan of a predecessor employer, service for such predecessor shall be treated as service for the employer, and
(2)
in any case in which the employer maintains a plan which is not the plan maintained by a predecessor employer, service for such predecessor shall, to the extent provided in regulations prescribed by the Secretary of the Treasury, be treated as service for the employer.
(c)
Plan maintained by controlled group of corporations
(d)
Plan of trades or businesses under common control
(e)
Special rules for eligible combined defined benefit plans and qualified cash or deferred arrangements
(1)
General rule
(2)
Eligible combined plan
For purposes of this subsection—
(A)
In general
The term “eligible combined plan” means a plan—
(i)
which is maintained by an employer which, at the time the plan is established, is a small employer,
(ii)
which consists of a defined benefit plan and an applicable individual account plan each of which qualifies under section 401(a) of title 26,
(iii)
the assets of which are held in a single trust forming part of the plan and are clearly identified and allocated to the defined benefit plan and the applicable individual account plan to the extent necessary for the separate application of this chapter under paragraph (1), and
(iv)
with respect to which the benefit, contribution, vesting, and nondiscrimination requirements of subparagraphs (B), (C), (D), (E), and (F) are met.
For purposes of this subparagraph, the term “small employer” has the meaning given such term by section 4980D(d)(2) of title 26, except that such section shall be applied by substituting “500” for “50” each place it appears.
(B)
Benefit requirements
(i)
In general
(ii)
Applicable percentage
For purposes of clause (i), the applicable percentage is the lesser of—
(I)
1 percent multiplied by the number of years of service with the employer, or
(II)
20 percent.
(iii)
Special rule for applicable defined benefit plans
(iv)
Years of service
(C)
Contribution requirements
(i)
In general
The contribution requirements of this subparagraph with respect to any applicable individual account plan forming part of an eligible combined plan are met if—
(I)
the qualified cash or deferred arrangement included in such plan constitutes an automatic contribution arrangement, and
(II)
the employer is required to make matching contributions on behalf of each employee eligible to participate in the arrangement in an amount equal to 50 percent of the elective contributions of the employee to the extent such elective contributions do not exceed 4 percent of compensation.
 Rules similar to the rules of clauses (ii) and (iii) of section 401(k)(12)(B) of title 26 shall apply for purposes of this clause.
(ii)
Nonelective contributions
(D)
Vesting requirements
The vesting requirements of this subparagraph are met if—
(i)
in the case of a defined benefit plan forming part of an eligible combined plan an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit under the plan derived from employer contributions, and
(ii)
in the case of an applicable individual account plan forming part of eligible combined plan—
(I)
an employee has a nonforfeitable right to any matching contribution made under the qualified cash or deferred arrangement included in such plan by an employer with respect to any elective contribution, including matching contributions in excess of the contributions required under subparagraph (C)(i)(II), and
(II)
an employee who has completed at least 3 years of service has a nonforfeitable right to 100 percent of the employee’s accrued benefit derived under the arrangement from nonelective contributions of the employer.
 For purposes of this subparagraph, the rules of section 1053 of this title shall apply to the extent not inconsistent with this subparagraph.
(E)
Uniform provision of contributions and benefits
(F)
Requirements must be met without taking into account social security and similar contributions and benefits or other plans
(i)
In general
(ii)
Social security and similar contributions
The requirements of this clause are met if—
(I)
the requirements of subparagraphs (B) and (C) are met without regard to section 401(l) of title 26, and
(II)
the requirements of sections 401(a)(4) and 410(b) of title 26 are met with respect to both the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan without regard to section 401(l) of title 26.
(iii)
Other plans and arrangements
(3)
Automatic contribution arrangement
For purposes of this subsection—
(A)
In general
A qualified cash or deferred arrangement shall be treated as an automatic contribution arrangement if the arrangement—
(i)
provides that each employee eligible to participate in the arrangement is treated as having elected to have the employer make elective contributions in an amount equal to 4 percent of the employee’s compensation unless the employee specifically elects not to have such contributions made or to have such contributions made at a different rate, and
(ii)
meets the notice requirements under subparagraph (B).
(B)
Notice requirements
(i)
In general
(ii)
Reasonable period to make election
The requirements of this clause are met if each employee to whom subparagraph (A)(i) applies—
(I)
receives a notice explaining the employee’s right under the arrangement to elect not to have elective contributions made on the employee’s behalf or to have the contributions made at a different rate, and
(II)
has a reasonable period of time after receipt of such notice and before the first elective contribution is made to make such election.
(iii)
Annual notice of rights and obligations
The requirements of this subparagraph shall not be treated as met unless the requirements of clauses (i) and (ii) of section 401(k)(12)(D) of title 26 are met with respect to the notices described in clauses (ii) and (iii) of this subparagraph.
(4)
Coordination with other requirements
(A)
Treatment of separate plans
(B)
Reporting
(5)
Applicable individual account plan
For purposes of this subsection—
(A)
In general
(B)
Qualified cash or deferred arrangement
(f)
Cooperative and small employer charity pension plans
(1)
In general
For purposes of this subchapter, except as provided in this subsection, a CSEC plan is an employee pension benefit plan (other than a multiemployer plan) that is a defined benefit plan—
(A)
to which section 104 of the Pension Protection Act of 2006 applies, without regard to—
(i)
section 104(a)(2) of such Act;
(ii)
the amendments to such section 104 by section 202(b) of the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010; and
(iii)
paragraph (3)(B);
(B)
that, as of June 25, 2010, was maintained by more than one employer and all of the employers were organizations described in section 501(c)(3) of title 26;
(C)
that, as of June 25, 2010, was maintained by an employer—
(i)
described in section 501(c)(3) of such title,
(ii)
chartered under part B of subtitle II of title 36,
(iii)
with employees in at least 40 States, and
(iv)
whose primary exempt purpose is to provide services with respect to children; or
(D)
that, as of January 1, 2000, was maintained by an employer—
(ii)
who has been in existence since at least 1938,
(iii)
who conducts medical research directly or indirectly through grant making, and
(iv)
whose primary exempt purpose is to provide services with respect to mothers and children.
(2)
Aggregation
(3)
Election
(A)
In general
(B)
Special rule
(Pub. L. 93–406, title I, § 210, Sept. 2, 1974, 88 Stat. 866; Pub. L. 101–239, title VII, §§ 7891(a)(1), 7894(c)(10), Dec. 19, 1989, 103 Stat. 2445, 2449; Pub. L. 109–280, title IX, § 903(b)(1), (2)(A), Aug. 17, 2006, 120 Stat. 1044, 1048; Pub. L. 110–458, title I, § 109(c)(2), Dec. 23, 2008, 122 Stat. 5111; Pub. L. 113–97, title I, §§ 101, 103(a), Apr. 7, 2014, 128 Stat. 1102, 1117; Pub. L. 113–235, div. P, § 3(a), Dec. 16, 2014, 128 Stat. 2829; Pub. L. 116–136, div. A, title III, § 3609(a), Mar. 27, 2020, 134 Stat. 413.)
cite as: 29 USC 1060