© Copyright 2014 Saul Ewing LLP Employee Benefit Plans: What’s Mine is Mine and What’s Yours is My Responsibility Sarah (“Sally”) L. Church, Esq. Paul

© Copyright 2014 Saul Ewing LLP

Employee Benefit Plans: What’s Mine is Mine and What’s Yours is My Responsibility

Sarah (“Sally”) L. Church, Esq.Paul A. Kasicky, Esq.Kevin A. Wiggins, Esq.

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DISCLAIMERThe content of these presentation materials has been prepared by Saul Ewing LLP for informational purposes only. The provision and receipt of the information in these presentation materials should not be considered legal advice, does not create a lawyer-client relationship, and should not be acted on without seeking professional counsel who have been informed of the specific facts. Should you wish to contact a presenter to obtain more information regarding your company's particular circumstances, it may be necessary to enter into an attorney/client relationship.

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Discrimination Rules• Retirement Plans

401(k) 403(b) Defined Benefit Plans

• Health Plans Self-Insured Fully Insured (pending guidance)

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Discrimination Discrimination rules are designed to

help ensure participation by NHCEs All employees of a controlled group are

treated as employed by a single employer for purposes of the discrimination rules

Some Affordable Care Act requirements also apply on a controlled group basis

● Definition of “Large Employer”

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Controlled Group Parent/Subsidiary Chain

● Chain of corporations or other trades or businesses at least 80% owned by common parent

Trade or Businesses Under Common Control

● Five or fewer individuals, trusts, or estates own at least 80% of vote or value

● Such five or fewer persons own more than 50% of vote or value▪ Only taking into account “identical ownership”

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Exempt Organizations• If exempt organization’s employees

participate in a plan, then that exempt organization is in a controlled group with any organization under “common control”

• Different rules for churches

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Common Control• Common control exists between an

exempt organization and another organization if at least 80% of directors or trustees of one organization are either “representatives” of, or directly or indirectly controlled by, the other organization

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Representatives• A trustee or director of an exempt

organization is treated as a representative of another exempt organization if: Trustee Director Agent Employee

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Direct or Indirect Control• A director or trustee of an

organization is controlled by the other organization if the other organization has the general power to remove such trustee or director and designate a new trustee or director

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Permissive Aggregation• Two exempt organizations that maintain

a plan that covers employees from each organization may treat themselves as under common control if each of the organization regularly coordinates their day-to-day exempt activities E.g., an exempt hospital and an exempt

organization with which it coordinates delivery of medical services

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Joint Ventures• Controlled Group Rules• Benefits for Joint Venture Employees• Tax-Qualified Plans – Multiple

Employer• Group Health Care –MEWA

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Questions

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BaltimoreLockwood Place • 500 East Pratt Street, Suite 900 • Baltimore, MD 21202-3171 • (tel) 410.332.8600 • (fax)

410.332.8862Boston

131 Dartmouth Street, Suite 501 • Boston, MA 02116 • (tel) 617.723.3300 • (fax) 617.723.4151

HarrisburgPenn National Insurance Plaza • 2 North Second Street, 7th Floor • Harrisburg, PA 17101-1619 • (tel) 717.257.7500 •

(fax) 717.238.4622New York

245 Park Avenue, 24th Floor • New York, NY 10167 • (tel) 212.672.1995 • (fax) 212.372.8798

NewarkOne Riverfront Plaza • Newark, NJ 07102 • (tel) 973.286.6700 • (fax) 973.286.6800

PhiladelphiaCentre Square West • 1500 Market Street, 38th Floor • Philadelphia, PA 19102-2186 • (tel) 215.972.7777 • (fax)

215.972.7725

Princeton750 College Road East, Suite 100 • Princeton, NJ 08540-6617 • (tel) 609.452.3100 • (fax) 609.452.3122

Washington1919 Pennsylvania Avenue, N.W. Suite 550 • Washington, DC 20006-3434 (tel) 202.333.8800 • (fax) 202.337.6065

Wilmington222 Delaware Avenue • Suite 1200 P.O. Box 1266 • Wilmington, DE 19899• (tel) 302.421.6800 • (fax) 302.421.6813

Chesterbrook1200 Liberty Ridge Drive, Suite 200 • Wayne, PA 19087-5569 • (tel) 610.251.5050 • (fax) 610.651.5930

PittsburghOne PPG Place • 30th Floor • Pittsburgh, PA 15222 • (tel) 412.209.2500 • (fax) 412.209.2570

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Documents

© Copyright 2014 Saul Ewing LLP Employee Benefit Plans: What’s Mine is Mine and What’s Yours is My Responsibility Sarah (“Sally”) L. Church, Esq. Paul