Categories of participants | Total number | Nexus group | Non-nexus |
1. Individuals working under CBAs | 335 (67%) | 335 (67%) | 0 |
2. Retirees | 50 (10%) | 50 (10%) | 0 |
3. "Special Class"-Non-CBA, non-CBA-alumni | 100 (20%) | 50 (10%) | 50 (10%) |
4. Non-nexus participants | 15 (3%) | 0 | 15 (3%) |
Total | 500 (100%) | 435 (87%) | 65 (13%) |
In determining whether at least 85% of Plan A's participant population is made up of individuals with the required nexus to the collective bargaining agreement as required by paragraph (b)(2) of this section, the Plan may count as part of the nexus group only 50 (10% of the total plan population) of the 100 individuals described in paragraph (b)(2)(viii) of this section. That is because the number of individuals meeting the category of individuals in paragraph (b)(2)(viii) exceeds 10% of the total participant population by 50 individuals. The paragraph specifies that of those individuals who would otherwise be deemed to be nexus individuals because they are the type of individuals described in paragraph (b)(2)(viii), the number in excess of 10% of the total plan population may not be counted in the nexus group. Here, 50 of the 100 individuals employed by signatory employers, but not covered by the collective bargaining agreement, are counted as nexus individuals and 50 are not counted as nexus individuals. Nonetheless, the Plan satisfies the 85% criterion under paragraph (b)(2) because a total of 435 (335 individuals covered by the collective bargaining agreement, plus 50 retirees, plus 50 individuals employed by signatory employers), or 87%, of the 500 participants in Plan A are individuals who may be counted as nexus participants under paragraph (b)(2). Beneficiaries (e.g., spouses, dependent children, etc.) are not counted to determine whether the 85% test has been met.
29 C.F.R. §2510.3-40