US Code

Public Law 119-73 (01/23/2026)

29 U.S.C. § 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)
section 1082 of this title The minimum funding standard provided by 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

section 1563(a) of title 26section 1082 of this titleFor purposes of sections 1052, 1053, and 1054 of this title, all employees of all corporations which are members of a controlled group of corporations (within the meaning of , determined without regard to section 1563(a)(4) and (e)(3)(C) of title 26) shall be treated as employed by a single employer. With respect to a plan adopted by more than one such corporation, the minimum funding standard of shall be determined as if all such employers were a single employer, and allocated to each employer in accordance with regulations prescribed by the Secretary of the Treasury.

(d)

Plan of trades or businesses under common control

For purposes of sections 1052, 1053, and 1054 of this title, under regulations prescribed by the Secretary of the Treasury, all employees of trades or businesses (whether or not incorporated) which are under common control shall be treated as employed by a single employer. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (c).

(e)

Special rules for eligible combined defined benefit plans and qualified cash or deferred arrangements

(1)

General rule

1

1 So in original. Probably should be “is”.
Except as provided in this subsection, this chapter shall be applied to any defined benefit plan or applicable individual account plan which are  part of an eligible combined plan in the same manner as if each such plan were not a part of the eligible combined plan. In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.

(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)
section 401(a) of title 26 which consists of a defined benefit plan and an applicable individual account plan each of which qualifies under ,
(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.
section 4980D(d)(2) of title 26For purposes of this subparagraph, the term “small employer” has the meaning given such term by , except that such section shall be applied by substituting “500” for “50” each place it appears.
(B)

Benefit requirements

(i)

In general

The benefit requirements of this subparagraph are met with respect to the defined benefit plan forming part of the eligible combined plan if the accrued benefit of each participant derived from employer contributions, when expressed as an annual retirement benefit, is not less than the applicable percentage of the participant’s final average pay. For purposes of this clause, final average pay shall be determined using the period of consecutive years (not exceeding 5) during which the participant had the greatest aggregate compensation from the employer.

(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

section 1053(f)(3)(B) of this titlesection 1054(b)(5)(B)(i) of this title

  If the participant’s age as of the

   beginning of the year is—

The percentage is—

30 or less

2  

Over 30 but less than 40

4  

40 or over but less than 50

6  

50 or over

8.
If the defined benefit plan under clause (i) is an applicable defined benefit plan as defined in which meets the interest credit requirements of , the plan shall be treated as meeting the requirements of clause (i) with respect to any plan year if each participant receives pay credit for the year which is not less than the percentage of compensation determined in accordance with the following table:

(iv)

Years of service

section 1053(b) of this titleFor purposes of this subparagraph, years of service shall be determined under the rules of paragraphs (1), (2), and (3) of , except that the plan may not disregard any year of service because of a participant making, or failing to make, any elective deferral with respect to the qualified cash or deferred arrangement to which subparagraph (C) applies.

(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.
section 401(k)(12)(B) of title 26 Rules similar to the rules of clauses (ii) and (iii) of shall apply for purposes of this clause.
(ii)

Nonelective contributions

An applicable individual account plan shall not be treated as failing to meet the requirements of clause (i) because the employer makes nonelective contributions under the plan but such contributions shall not be taken into account in determining whether the requirements of clause (i)(II) are met.

(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.
section 1053 of this title For purposes of this subparagraph, the rules of shall apply to the extent not inconsistent with this subparagraph.
(E)

Uniform provision of contributions and benefits

In the case of a defined benefit plan or applicable individual account plan forming part of an eligible combined plan, the requirements of this subparagraph are met if all contributions and benefits under each such plan, and all rights and features under each such plan, must be provided uniformly to all participants.

(F)

Requirements must be met without taking into account social security and similar contributions and benefits or other plans

(i)

In general

The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.

(ii)

Social security and similar contributions

The requirements of this clause are met if—
(I)
l the requirements of subparagraphs (B) and (C) are met without regard to section 401() of title 26, and
(II)
l 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() of title 26.
(iii)

Other plans and arrangements

The requirements of this clause are met if the applicable defined contribution plan and defined benefit plan forming part of an eligible combined plan meet the requirements of sections 401(a)(4) and 410(b) of title 26 without being combined with any other plan.

(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

The requirements of this subparagraph are met if the requirements of clauses (ii) and (iii) are met.

(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 clause are met if each employee eligible to participate in the arrangement is, within a reasonable period before any year, given notice of the employee’s rights and obligations under the arrangement.

section 401(k)(12)(D) of title 26The requirements of this subparagraph shall not be treated as met unless the requirements of clauses (i) and (ii) of 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

section 1002(35) of this titleThe except clause in shall not apply to an eligible combined plan.

(B)

Reporting

section 1023 of this titleAn eligible combined plan shall be treated as a single plan for purposes of .

(5)

Applicable individual account plan

For purposes of this subsection—
(A)

In general

The term “applicable individual account plan” means an individual account plan which includes a qualified cash or deferred arrangement.

(B)

Qualified cash or deferred arrangement

section 401(k)(2) of title 26The term “qualified cash or deferred arrangement” has the meaning given such term by .

(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)
section 501(c)(3) of title 26 that, as of , was maintained by more than one employer and all of the employers were organizations described in ;
(C)
that, as of , 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 , was maintained by an employer—
(i)
section 501(c)(3) of title 26 described in ,
(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

section 414 of title 262

2 So in original. Probably should be “subparagraphs”.
All employers that are treated as a single employer under subsection (b) or (c) of shall be treated as a single employer for purposes of determining if a plan was maintained by more than one employer under subparagraph  (B) and (C) of paragraph (1).

(3)

Election

(A)

In general

If a plan falls within the definition of a CSEC plan under this subsection (without regard to this paragraph), such plan shall be a CSEC plan unless the plan sponsor elects not later than the close of the first plan year of the plan beginning after , not to be treated as a CSEC plan. An election under the preceding sentence shall take effect for such plan year and, once made, may be revoked only with the consent of the Secretary of the Treasury.

(B)

Special rule

If a plan described in subparagraph (A) is treated as a CSEC plan, section 104 of the Pension Protection Act of 2006, as amended by the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, shall cease to apply to such plan as of the first date as of which such plan is treated as a CSEC plan.

Pub. L. 93–406, title I, § 21088 Stat. 866Pub. L. 101–239, title VII103 Stat. 2445Pub. L. 109–280, title IX, § 903(b)(1)120 Stat. 1044Pub. L. 110–458, title I, § 109(c)(2)122 Stat. 5111Pub. L. 113–97, title I128 Stat. 1102Pub. L. 113–235, div. P, § 3(a)128 Stat. 2829Pub. L. 116–136, div. A, title III, § 3609(a)134 Stat. 413(, , ; , §§ 7891(a)(1), 7894(c)(10), , , 2449; , (2)(A), , , 1048; , , ; , §§ 101, 103(a), , , 1117; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 93–406section 1001 of this titleThis chapter, referred to in subsec. (e)(1), (2)(A)(iii), was in the original “this Act”, meaning , known as the Employee Retirement Income Security Act of 1974. Titles I, III, and IV of such Act are classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

section 104 of Pub. L. 109–280section 401 of Title 26Section 104 of the Pension Protection Act of 2006, referred to in subsec. (f)(1)(A), (3)(B), is , which is set out as a note under , Internal Revenue Code.

Pub. L. 111–192124 Stat. 1280section 1001 of this titleThe Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010, referred to in subsec. (f)(3)(B), is , , . For complete classification of this Act to the Code, see Short Title of 2010 Amendment note set out under and Tables.

Amendments

Pub. L. 116–1362020—Subsec. (f)(1)(D). added subpar. (D).

Pub. L. 113–97, § 1012014—Subsec. (f). , added subsec. (f).

Pub. L. 113–235, § 3(a)(1)Subsec. (f)(1)(C). , added subpar. (C).

Pub. L. 113–235, § 3(a)(2)Subsec. (f)(2). , substituted “subparagraph (B) and (C) of paragraph (1)” for “paragraph (1)(B)”.

Pub. L. 113–97, § 103(a)Subsec. (f)(3). , added par. (3).

Pub. L. 110–458, § 109(c)(2)(A)2008—Subsec. (e)(1). , inserted at end “In the case of a termination of the defined benefit plan and the applicable defined contribution plan forming part of an eligible combined plan, the plan administrator shall terminate each such plan separately.”

Pub. L. 110–458, § 109(c)(2)(B)Subsec. (e)(3) to (6). , struck out par. (3) and redesignated pars. (4) to (6) as (3) to (5), respectively. Former par. (3) related to nondiscrimination requirements for qualified cash or deferred arrangement.

Pub. L. 109–280, § 903(b)(2)(A)2006—, inserted “and other special rules” after “plans” in section catchline.

Pub. L. 109–280, § 903(b)(1)Subsec. (e). , added subsec. (e).

Pub. L. 101–239, § 7894(c)(10)1989—Subsec. (c). , substituted “and (e)(3)(C) of such Code” for “and (e)(3)(C) of such code”, which for purposes of codification was translated as “and (e)(3)(C) of title 26” thus requiring no change in text.

Pub. L. 101–239, § 7891(a)(1), substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date of 2020 Amendment

Pub. L. 116–136section 3609(c) of Pub. L. 116–136section 414 of Title 26Amendment by applicable to plan years beginning after , see , set out as a note under , Internal Revenue Code.

Effective Date of 2014 Amendment

Pub. L. 113–235Pub. L. 113–97section 3(c) of Pub. L. 113–235section 414 of Title 26Amendments by effective as if included in the amendments made by the Cooperative and Small Employer Charity Pension Flexibility Act, , see , set out as a note under , Internal Revenue Code.

section 101 of Pub. L. 113–97section 3 of Pub. L. 113–97section 401 of Title 26Amendment by applicable to years beginning after , see , set out as a note under , Internal Revenue Code.

Pub. L. 113–97, title I, § 103(d)128 Stat. 1120

section 401 of Title 26“The amendments made by this section [amending this section and provisions set out as a note under , Internal Revenue Code] shall apply as of the date of enactment of this Act [].”
, , , provided that:

Effective Date of 2008 Amendment

Pub. L. 110–458Pub. L. 109–280section 112 of Pub. L. 110–458section 72 of Title 26Amendment by effective as if included in the provisions of to which the amendment relates, except as otherwise provided, see , set out as a note under , Internal Revenue Code.

Effective Date of 2006 Amendment

Pub. L. 109–280section 903(c) of Pub. L. 109–280section 414 of Title 26Amendment by applicable to plan years beginning after , see , set out as a note under , Internal Revenue Code.

Effective Date of 1989 Amendment

section 7891(a)(1) of Pub. L. 101–239Pub. L. 99–514section 7891(f) of Pub. L. 101–239section 1002 of this titleAmendment by effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, , to which such amendment relates, see , set out as a note under .

section 7894(c)(10) of Pub. L. 101–239Pub. L. 93–406section 7894(i) of Pub. L. 101–239section 1002 of this titleAmendment by effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, , to which such amendment relates, see , set out as a note under .

Regulations

section 1031 of this titleSecretary authorized, effective , to promulgate regulations wherever provisions of this subchapter call for the promulgation of regulations, see .