Reg. § 1.413-2 Special rules for plans maintained by more than one employer.
(a) Application of section 413(c)
(1) In general Section describes certain plans (and each trust which is a part of any such plan) hereinafter referred to as “section plans.” A plan (and each trust which is a part of such plan) is deemed to be a section plan if it is described in subparagraph (2) of this paragraph. Notwithstanding any other provision of the code (not specifically in conflict with the special rules hereinafter mentioned), a section plan is subject to the special rules of section (1) through (6) and through of this section.
(2) Section 413(c) plan A plan (and each trust which is a part of such plan) is a section plan if—
(i) The plan is a single plan, within the meaning of section and , and
(ii) The plan is maintained by more than one employer.
For purposes of subdivision (ii) of this subparagraph, the number of employers maintaining the plan is determined by treating any employers described in section (relating to a controlled group of corporations) or any employers described in section (relating to trades or businesses under common control), whichever is applicable, as if such employers are a single employer. See for rules relating to the time when an employer maintains a plan. A master or prototype plan is not a section plan unless such a plan is described in this subparagraph. Similarly, the mere fact that a plan, or plans, utilizes a common trust fund or otherwise pools plan assets for investment purposes does not, by itself, result in a particular plan being treated as a section plan.
(3) Additional rules
(i) If a plan is a collectively bargained plan described in , the rules of section and this section do not apply, and the rules of section and do apply to the plan.
(ii) The special rules of section and relating to the application of section , other than the rules of section , do not apply to a section plan. Thus, for example, the minimum coverage requirements of section are generally applied to a section plan on an employer-by-employer basis, taking into account the generally applicable rules such as section and section (b) and (c).
(iii) The special rules of section and (relating to (A) section and prohibited discrimination, and (B) 411(d)(3) and vesting required on termination, partial termination, or discontinuance of contributions) do not apply to a section plan. Thus, for example, the determination of whether or not there is a termination, within the meaning of section , of a section plan is made solely by reference to the rules of sections and .
(iv) The qualification of a section plan, at any relevant time, under section , or , as modified by section and this section, is determined with respect to all employers maintaining the section plan. Consequently, the failure by one employer maintaining the plan (or by the plan itself) to satisfy an applicable qualification requirement will result in the disqualification of the section plan for all employers maintaining the plan.
(4) Effective dates Except as otherwise provided, section and this section apply to a plan for plan years beginning after December 31, 1953.
(b) Participation Section and the regulations thereunder shall be applied as if all employees of each of the employers who maintain the plan were employed by a single employer.
(c) Exclusive benefit In the case of a plan subject to this section, the exclusive benefit requirements of section shall be applied to the plan in the same manner as under section and .
(d) Vesting Section and the regulations thereunder shall be applied as if all employers who maintain the plan constituted a single employer. The application of any rules with respect to breaks in service under section shall be made under regulations prescribed by the Secretary of Labor. Thus, for example, all the hours which an employee worked for each employer maintaining the plan would be aggregated in computing the employee's hours of service under the plan. See also 29 CFR Part 2530 (Department of Labor regulations relating to minimum standards for employee pension benefit plans).
(Sec. 411 (88 Stat. 901; 26 U.S.C. 411))
[T.D. 7501, 42 FR 42340, Aug. 23, 1977, as amended by 42 FR 47198, Sept. 20, 1977; T.D. 7654, 44 FR 65065, Nov. 9, 1979]