Controlled Group and Affiliated Service Group Rules for Employee Benefit Plans

Summary

This practice note addresses the "controlled group" and "affiliated service group" rules under the Internal Revenue Code (I.R.C.) and the Employee Retirement Income Security Act of 1974 (ERISA), and their impact on retirement and health and welfare plans. These rules treat employees of certain related entities as employees of a single employer for various purposes relating to employee benefit plan compliance and administration, including plan qualification and nondiscrimination testing, employer provided health care coverage, and certain determinations regarding multiemployer plans and multiple employer welfare plans (MEWAs).