I just want to make sure that I'm not missing something here. Isn't it true that in order to be an Adopting Employer, a sponsor must have some type of relationship with the original plan sponsor -- i.e., control group, affiliated service group, etc. A TPA is tellling me that unrelated employers can adopt a prototype document now because of GUST.

I'm thinking the only way that non-related employers can be an Adopting Employer is under a Multiple-Employer Plan.

A multiple employer plan is just a "regular" plan which is sponsored by two or more unrelated employers. So the answer to your question is that an unrelated employer can become an adopting employer of a prototype plan.

Not sure about the TPA's reference to GUST though. GUST didn't change the multiple employer plan definition.

My understanding of the IRS guidance on prototype plans is that they are not approved by the IRS for use by multiple employer plans. An individually designed plan can certainly be multiple employer.

Thanks, that's what I was thinking also.