[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.7701-17T]

[Page 651]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
                               Definitions
 
Sec. 301.7701-17T  Collective-bargaining plans and agreements (temporary).

    Q-1: How did the Tax Reform Act of 1984 (TRA of 1984) change the 
laws with respect to plans that are maintained pursuant to collective 
bargaining agreements?
    A-1: (a) Many of the requirements and rules applicable to deferred 
compensation and welfare benefit plans are different for plans 
maintained pursuant to a collective bargaining agreement. Prior to the 
TRA of 1984, the Internal Revenue Code provided no clear definition of 
an employee representative or whether there is a collective bargaining 
agreement between such employee representative and one or more 
employers.
    (b) Section 526(c) of the TRA of 1984 added a new condition under a 
new section 7701(a)(46) that must be satisfied in order for a plan to be 
considered to be a plan maintained pursuant to a collective bargaining 
agreement between employee representatives and one or more employers for 
purposes of the Code after March 31, 1984. If more than one-half of the 
membership of an organization is comprised of owners, officers, and 
executives of employers covered by the plan, then such organization is 
not an employee representative for purposes of determining whether a 
plan is to be treated as maintained pursuant to a collective bargaining 
agreement between employee representatives and one or more employers. 
Whether an individual is an owner, officer or executive is to be 
determined separately with respect to each employer. Additionally, 
section 7701(a)(46) provides that the Internal Revenue Service shall 
make the determination for purposes of the Code as to whether there is a 
collective bargaining agreement between employee representatives and one 
or more employers.
    Q-2: If an organization does not fail to be an employee 
representative under the 50 percent or less test of section 7701(a)(46), 
is a plan maintained pursuant to an agreement between such organization 
and one or more employers necessarily treated, under the Code, as a plan 
maintained pursuant to a collective bargaining agreement between an 
employee representative and one or more employers?
    A-2: (a) No.
    (b) Specific Code provisions generally require other conditions than 
that in section 7701(a)(46) to be satisfied in order for a plan to be 
considered to be collectively-bargained. For example, in order for a 
plan to be described in section 413(a), the Secretary of Labor must find 
that the plan is maintained pursuant to a collective bargaining 
agreement between employee representatives and one or more employers.
    (c) Even if (1) the finding in the example in the preceding 
paragraph (b) is made by the Secretary of Labor, (2) the union has been 
recognized as exempt under section 501(c)(5), and (3) the percentage 
condition in section 7701(a)(46) is satisfied, the Internal Revenue 
Service has the authority, pursuant to section 7701(a)(46), to determine 
whether there is a collective bargaining agreement under the Code.

[T.D. 8073, 51 FR 4337, Feb. 4, 1986]