Substantial owners plan

Addresses the Professional Service Employer plan and Substantial Owner plan coverage exemptions.

The only participant entitled to be credited with service or receive a benefit under the plan has continuously fallen within the definition of a "substantial owner.”

A plan with one participant who is a substantial owner is not covered.

A plan maintained exclusively for substantial owners is exempt from coverage under Title IV.

A plan with a participant who is the sole stockholder meets the Substantial Owner exemption from plan coverage under Title IV.

A proposal to allocate post termination gains in plan assets to increase a participant’s benefits is not permissible.