ARE NON-EMPLOYEES PERMITTED TO BE COVERED BY A PLAN?

In most cases, NO. Plans must be for the exclusive use of employees and participants. A single employer is not permitted to cover an employee(s) of another company under a single employer plan. Plans that are currently or will be covering employees of multiple employers, are referred to as a “controlled group”, “affiliated service group” or multiple employer plan (which would include a Union plans that cover members of a particular union).