29 U.S.C. § 1060 — Multiple employer plans and other special rules

(a) A plan maintained by more than one employer applies section 1052 as if all employees worked for one employer, sections 1053 and 1054 as if all employers were one employer (with Secretary regulations for breaks in service), and the minimum funding standard under section 1082 as if all participants worked for one employer. (b) If an employer maintains a predecessor’s plan, predecessor service counts as employer service. If it maintains a different plan, predecessor service counts to the extent Treasury regulations provide. (c) For sections 1052-1054, all employees of corporations that are members of a controlled group of corporations (within the meaning of section 1563(a) of title 26, determined without regard to section 1563(a)(4) and (e)(3)(C) of title 26) are treated as employed by one employer. A jointly adopted plan’s minimum funding standard is determined that way and allocated under Treasury regulations. (d) Under Treasury regulations, employees of commonly controlled trades or businesses, incorporated or not, are treated as one employer for sections 1052-1054, using principles like subsection (c). (e)(1) Except as this subsection provides, a defined benefit plan and applicable individual account plan in an eligible combined plan are treated separately under this chapter; on termination, the administrator terminates each separately. (2)(A) An “eligible combined plan” is maintained by an employer that was a small employer when established, consists of a defined benefit plan and an applicable individual account plan, each of which qualifies under section 401(a) of title 26, holds their assets in one trust clearly allocated enough for separate application, and meets (B)-(F). “Small employer” uses section 4980D(d)(2), replacing 50 with 500. (B)(i) Each defined-benefit participant’s employer-derived accrued annual benefit must be at least the applicable percentage of final average pay, using no more than the 5 consecutive years with greatest total compensation. (ii) The percentage is the lesser of 1 percent times years of service or 20 percent. (iii) A qualifying interest-credit plan meets this rule if annual pay credits are at least 2 percent for age 30 or less, 4 percent over 30 and under 40, 6 percent age 40 to under 50, and 8 percent age 50 or older. (iv) Service uses section 1053(b)(1)-(3), but no year may be ignored because of an elective deferral choice. (C)(i) The individual-account plan must have an automatic contribution arrangement and employer matching equal to 50 percent of employee elective contributions up to 4 percent of compensation, with similar section 401(k)(12)(B)(ii)-(iii) rules. (ii) Nonelective employer contributions do not cause failure but do not count toward that match. (D) Vesting is 100 percent after 3 years for defined-benefit employer contributions; all matching contributions vest without forfeiture, and nonelective contributions vest 100 percent after 3 years. Section 1053 applies when consistent. (E) Contributions, benefits, rights, and features must be uniform for all participants under each plan. (F) Requirements must be met without using Social Security or similar contributions or benefits: (ii) (I) (B) and (C) must be met without section 401(l), and (II) sections 401(a)(4) and 410(b) must be met for both plans without section 401(l); (iii) each plan must meet those sections without combining with another plan. (3)(A) An automatic arrangement treats each eligible employee as electing a 4-percent contribution unless the employee elects out or another rate, and it must meet notice rules. (B) Employees must receive notice of those choices with reasonable time before the first contribution, and annual notice of rights and duties; the notices must also meet section 401(k)(12)(D)(i)-(ii). (4)(A) The exception in section 1002(35) does not apply. (B) The combined plan is one plan for section 1023 reporting. (5)(A) An applicable individual account plan includes a qualified cash-or-deferred arrangement. (B) That arrangement has the meaning in section 401(k)(2). (f)(1) A CSEC plan is, subject to this subsection, a non-multiemployer defined-benefit pension plan covered by section 104 of the Pension Protection Act of 2006 without the listed exclusions, and meeting one of these conditions: (A) that Act applies; (B) on June 25, 2010, it was maintained by multiple employers all described in section 501(c)(3); (C) on that date it was maintained by a section 501(c)(3) employer chartered under title 36 part B, with employees in at least 40 States, whose main exempt purpose serves children; or (D) on January 1, 2000, it was maintained by a section 501(c)(3) employer existing since at least 1938, conducting medical research directly or through grants, whose main exempt purpose serves mothers and children. (2) Employers treated as one under section 414(b) or (c) count as one for (B) and (C). (3)(A) A plan fitting the definition is a CSEC plan unless its sponsor elects by the end of its first plan year beginning after December 31, 2013 not to be one; the election applies to that year and can be revoked only with Treasury consent. (B) If treated as CSEC, the 2006 Act provisions as amended cease applying on the first date of that treatment.