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1. Per the changes made to the determination letter program for Multiple Employer Plans by Announcement 2001-77, does each adopting employer have to come in for an individual determination letter?
2. Are the adopting employers required to give Notice to Interested Parties if they are not coming in for individual letters?
3. Do the employers maintaining the plan have reliance on the determination letter issued to the plan?

Per the changes made to the determination letter program for Multiple Employer Plans by Announcement 2001-77, does each adopting employer have to come in for an individual determination letter?

Under the old procedures, each employer maintaining the plan had to submit a Form 5300 application. Under the new procedures, the sponsors of the plan have two choices:

1. Submit just for a determination letter on the plan; or
2. Submit for letter on the plan and a letter for each employer maintaining the plan who wants an individual letter. Note: All adopting employers do NOT have to submit for a determination letter.

Are the adopting employers required to give Notice to Interested Parties if they are not coming in for individual letters?

Yes, this law does not change the "Notice to Interested Parties" requirement.

Do the employers maintaining the plan have reliance on the determination letter issued to the plan?

Yes. Announcement 2001-77 states, "The employers will be able to rely on the favorable determination letter issued for the plan except with respect to the requirements of 401(a)(4), 401(a)(26), 401(l), 410(b) and 414(s) and, if the employer maintains or has ever maintained another plan, IRC 415 and 416".

It is important to remember that this modification of reliance procedures is subject to other limitations and conditions described in Section III of the announcement.