Can someone explain the below from the 5500 instructions for Schedule T, 4c, regarding certain parts of a plan that must be disaggregated?

4. A plan that benefits both collectively bargained employees and noncollectively bargained employees. None of the employees benefiting under a plan are considered collectively bargained employees if more than 2% of the employees covered by the plan are professional employees.

If I have a plan that covers both collectively bargained (70%) and noncollectively bargained employees (30%), do I disaggregate for schedule T purposes or do I not? I am very confused by the statement "None of the employees benefiting under a plan are considered collectively bargained employees if more than 2% of the employees covered by the plan are professional employees".

Thanks

Maybe an example would help. Say the union employees work at a hospital with the following facts:

100 total union employees
3 of the union employees are doctors

A doctor is a professional employee, so you have 3% that are professional employees. That means that all the employees of that union CANNOT be considered to be in a union (and therefore excludable when testing the non-union employees) for coverage testing.

If less than 2% of the employees were professional employees, then all the union employees are treated as excludable when testing the non-union employees.