More on Top-Hat Plans

There aren't many days when three things appear that need a comment here, but this is the day.

There is an excellent article at the Plan Sponsor web site on top-hat plan status. This is a reversal of a decision discussed here earlier (not because of its dramatic content but because there are so few cases on the issue).

The article is located at:

http://www.plansponsor.com/pi_type10/?RECORD_ID=36259

The decision reflects pretty much the traditional understanding that top-hat plans should be limited to those who have actual bargaining power. In that sense, the new result is unsurprising.

The lesson from the decision is that one bad coverage decision loses top-hat plan status, so employers and their advisers should be careful.