Have an entertainer who is 100% owner of her corporation. She is also a member of the Screen Actors Guild. The Guild has a multiemployer defined benefit pension plan.

Our understanding is that if her corporation sponsors a single employer DB:

1) The single is not aggregated with the multi for the 100% of pay limit.
2) The single is aggregated with the multi for the 415 dollar limit.

If, for example, she had participated in the guild plan for 10 years and acrued a monthly benefit of $2,000, would the proposed single employer plan sponsored by her corporation be in violation the first year (max dollar limit = $14,583 / 10 = $1,458). Or, when aggregating plans, do we get to consider participation under BOTH plans for the 415 dollar limit in either plan?

Thanks much.

Don't know if this helps, but there was an extensive discussion regarding 415 and other SAG issues back in 2002 and March of '05.


http://benefitslink.com/boards/index.php?s...mp;#entry113738

http://benefitslink.com/boards/index.php?s...=14810&st=0

KJohnson

Thanks for the reply.

Reading the two threads gives me an uneasy feeling. Although quite extensive with excellent points, the 2002 discussion seems to conclude with an indication that a single DB spnsored by a loanout corp must be aggregated with the multi for the 415 dollar limit. The 2005 discussion concludes with IRS guidelines that refer to the treatment of loanout corporations as "beyond the scope of the guidlines". However, they then seem to indicate that a single employer plan sponsored by a loanout need not be aggregated "if a worker qualifies as an independent contractor with respect to the production company under these guidelines, the production company would not be required to treat the worker as an employee even if a loan-out corporation is involved. Nonetheless, the worker may be an employee of the loan-out corporation".

I guess there is no real concrete answer on this other than the apparent guidlines right?