Is Your Plan Governmental?
If it is, then you are not subject to Title I of ERISA, so you are not subject to all the audit and reporting dictated by Title I.
In a series of recent Advisory Opinions, DOL indicated that the presence of a de minimis number of private sector participants, in an otherwise governmental plan, will not cause the plan to become subject to Title I.
PBGC has not yet agreed to this treatment for purposes of Title IV, the section of ERISA that mandates premiums to PBGC. When last I heard, PBGC's position was that a single nongovernmental employee would cause the entire plan to be subject to PBGC coverage requirements. Also, IRS may not agree with the definition when minimum funding is considered. Look for more guidance to evolve in the next year or so.
These Advisory Opinions are posted on the DOL/PWBA web site.
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