One of the drawbacks that is often cited about multiple employer plans is the so-called “one bad apple rule.” It provides that if a single participating employer in a MEP allows its part of the plan to operate in a non-compliant manner, it puts the entire plan and all of the other participating employers at risk. Although there have been numerous proposals in Congress to eliminate the one bad apple rule, none have made it across the finish line.
Topic Archive: One Bad Apple Rule
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